What was the total member's equity for Engineering For Kids in 2024?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| LIABILITIES AND MEMBER'S EQUITY | ||||||
| MEMBER'S EQUITY | ||||||
| Member capital | 100 | 100 | 100 | |||
| Retained earnings | 112,512 | 75,293 | 40,360 | |||
| TOTAL MEMBER'S EQUITY | 112,612 | 75,393 | 40,460 |
| Member Capital | Retained Earnings (Deficit) | Total | |
|---|---|---|---|
| BALANCE, January 1, 2022 | $ 100 | $ (15,900) | $ (15,800) |
| Net income | - | 56,260 | 56,260 |
| BALANCE, December 31, 2022 | 100 | 40,360 | 40,460 |
| Net income | - | 34,933 | 34,933 |
| BALANCE, December 31, 2023 | 100 | 75,293 | 75,393 |
| Net income | - | 37,219 | 37,219 |
| BALANCE, December 31, 2024 | $ 100 | $ 112,512 | $ 112,612 |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, the total member's equity as of December 31, 2024, was $112,612. This figure represents the sum of member capital ($100) and retained earnings ($112,512). Understanding member's equity is crucial for prospective franchisees as it provides insight into the financial stability and overall net worth of Engineering For Kids.
Specifically, the member's equity reflects the ownership stake in the company. For Engineering For Kids, the member capital remained constant at $100 from 2022 through 2024. The retained earnings, which represent accumulated profits not distributed to the member, significantly influenced the total equity. The retained earnings increased from $(15,900) in January 1, 2022 to $112,512 by the end of 2024, indicating a positive trend in the company's profitability.
Reviewing the changes in member's equity over the years can help a potential franchisee assess the financial performance of Engineering For Kids. The increase in retained earnings suggests that the company has been generating profits and reinvesting them back into the business. This can be a positive indicator of the franchisor's ability to support its franchisees and manage its own financial health. A prospective franchisee should analyze these trends in conjunction with other financial statements to gain a comprehensive understanding of the company's financial position.
It is important to note that while the member's equity provides a snapshot of the company's net worth, it does not reflect the entire financial picture. Prospective franchisees should also consider other factors such as liabilities, cash flow, and revenue when evaluating the financial health of Engineering For Kids. Consulting with a financial advisor is recommended to fully understand the implications of these financial statements.