What was the total amount of late fees collected by Engineering For Kids in 2023?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
ILITIES AND MEMBER'S EQUITY | $ | 138,356 | $ | 218,424 | $ | 119,691 |
ENGINEERING FOR KIDS INTERNATIONAL, LLC STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| REVENUE | ||||||
| Royalty fees | $ 235,010 | $ | 264,890 | $ | 233,947 | |
| Brand fees | 44,888 | 52,752 | 49,183 | |||
| Technology fees | 38,300 | 37,500 | 42,200 | |||
| Franchise fees | 90,250 | 34,000 | 51,500 | |||
| Late fees | 10,114 | 2,875 | 1,925 | |||
| TOTAL REVENUE | 418,562 | 392,017 | 378,755 | |||
| OPERATING EXPENSES | ||||||
| Royalty and overhead | 83,700 | 78,400 | 36,000 | |||
| Salaries and wages | 87,156 | 69,961 | 64,974 | |||
| Marketing and advertising | 15,397 | 53,981 | 72,488 | |||
| Franchisor marketing expense | 51,070 | 46,511 | 33,266 | |||
| Office | 44,342 | 32,211 | 21,614 | |||
| Consulting fees | 21,426 | 29,607 | 29,870 | |||
| Professional and legal fees | 51,589 | 20,265 | 40,483 | |||
| Travel | 9,801 | 12,349 | 6,622 | |||
| Credit loss expense | 1,740 | 6,953 | 10,739 | |||
| Bank charges | 4,685 | 2,405 | 2,037 | |||
| Amortization | 10,437 | - | 2,235 | |||
| TOTAL OPERATING EXPENSES | 381,343 | 352,643 | 320,328 | |||
| Income from oper |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the company collected $2,875 in late fees during the year 2023. This figure is part of the overall revenue reported by Engineering For Kids, which totaled $392,017 for that year. The late fees represent a small fraction of the total revenue.
For a prospective franchisee, this indicates that late fees are not a significant revenue stream for Engineering For Kids. The franchisor's revenue primarily comes from royalty fees, brand fees, technology fees, and franchise fees. The franchisor collected $264,890 in royalty fees, $52,752 in brand fees, $37,500 in technology fees, and $34,000 in franchise fees in 2023.
It is important to note that while late fees are a minor component of revenue, they can still impact the relationship between Engineering For Kids and its franchisees. Consistent late payments from franchisees could lead to enforcement actions or other contractual remedies as outlined in the franchise agreement. Franchisees should aim to manage their payments diligently to avoid incurring these fees and maintain a positive standing with the franchisor.
Overall, the information suggests that Engineering For Kids relies on consistent and timely payments of larger fees such as royalties and brand fees to sustain its operations. The relatively low amount of late fees collected implies that most franchisees are likely meeting their payment obligations on time.