What was the total late fees revenue for Engineering For Kids in 2022?
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 fee |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the total revenue from late fees in 2022 was $1,925. This figure is part of the overall revenue reported in the company's statements of operations. It is important to note that late fees constitute a relatively small portion of Engineering For Kids' total revenue, compared to other sources such as royalty fees, brand fees, technology fees, and franchise fees.
For a prospective franchisee, understanding the revenue streams of Engineering For Kids is crucial. While late fees might not be a significant income source, they reflect the financial interactions between the franchisor and its franchisees. Monitoring the trend of late fees over the years (2022-2024) can provide insights into the financial discipline and operational efficiency within the franchise system. A consistent increase in late fees might indicate potential issues with franchisee payments or the need for improved financial management processes.
Furthermore, the FDD provides a broader financial picture, including details on various operating expenses and income sources. Reviewing these financial statements in their entirety will enable potential franchisees to assess the overall financial health and stability of Engineering For Kids. This information is essential for making an informed investment decision and understanding the financial dynamics of the franchise system.
In summary, while the late fee revenue for 2022 was a modest $1,925, it is advisable for prospective franchisees to consider this figure within the context of the overall financial performance of Engineering For Kids, as detailed in the provided statements of operations. Analyzing trends and comparing different revenue streams will contribute to a comprehensive understanding of the franchise's financial landscape.