What was the total income from operations for Engineering For Kids in 2023?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| REVENUE | ||||
| Royalty fees | $ 2 35,010 | $ 2 64,890 | $ 2 33,947 | |
| Brand fees | 44,888 | 52,752 | 4 9,183 | |
| 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 | 3 6,000 | |
| Salaries and wages | 87,156 | 69,961 | 6 4,974 | |
| Marketing and advertising | 15,397 | 53,981 | 7 2,488 | |
| Franchisor marketing expense | 51,070 | 46,511 | 3 3,266 | |
| Office | 44,342 | 32,211 | 2 1,614 | |
| Consulting fees | 21,426 | 29,607 | 2 9,870 | |
| Professional and legal fees | 51,589 | 20,265 | 4 0,483 | |
| Travel | 9,801 | 12,349 | 6 ,622 | |
| Credit loss expense | 1,740 | 6,953 | 1 0,739 | |
| Bank charges | 4,685 | 2,405 | 2 ,037 | |
| Amortization | 10,437 | - | 2 ,235 | |
| TOTAL OPERATING EXPENSES | 381,343 | 352,643 | 320,328 | |
| Income from operations | 3 7,219 | 3 9,374 | 5 8,427 | |
| OTHER INCOME | ||||
| Foreign exchange gain (loss) | - | ( 4,441) | ( 2,167) | |
| NET INCOME | $ 3 7,219 | $ 3 4,933 | $ 5 6,260 |
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, the income from operations in 2023 was $39,374. This figure represents the company's earnings before considering other income items like foreign exchange gains or losses.
For a prospective franchisee, understanding the franchisor's income from operations can provide insight into the financial health and stability of the company. A consistently positive income from operations suggests that the franchisor is managing its core business effectively. However, it is essential to consider this figure in conjunction with other financial metrics and industry benchmarks to get a comprehensive view.
It's also important to note that past performance is not necessarily indicative of future results. While Engineering For Kids had an income from operations of $39,374 in 2023, various factors could influence future profitability. These factors may include changes in market conditions, increased competition, or shifts in consumer preferences. Therefore, prospective franchisees should conduct thorough due diligence and consult with financial advisors to assess the potential risks and rewards of investing in an Engineering For Kids franchise.
In addition to the income from operations, the FDD also provides details on revenue and operating expenses. Reviewing these figures can offer further insights into the franchisor's financial performance and cost structure. For example, a prospective franchisee might analyze the breakdown of revenue streams, such as royalty fees, brand fees, and technology fees, to understand how the franchisor generates income. Similarly, examining operating expenses, such as salaries and wages, marketing and advertising, and professional fees, can help assess the franchisor's cost management practices.