What was the total net income for Engineering For Kids in 2022?
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' 2025 Franchise Disclosure Document, the net income for 2022 was $56,260. This figure represents the company's profit after deducting all operating expenses and other income considerations, such as foreign exchange gains or losses, from the total revenue.
For a prospective franchisee, understanding the franchisor's financial performance is crucial. A higher net income generally indicates a more stable and potentially profitable franchisor. This can translate to better support, resources, and brand recognition for the franchisee. However, it is essential to consider that past performance does not guarantee future results, and various factors can influence the franchisor's financial health.
It is also important for potential franchisees to compare Engineering For Kids' net income with those of other similar franchises in the educational services sector to gauge its relative financial strength. Additionally, prospective franchisees should investigate the trends in revenue and expenses over the three years presented (2022-2024) to assess the franchisor's growth trajectory and identify any potential areas of concern. Consulting with a financial advisor is recommended to fully understand the implications of these financial figures.