What was the total revenue from royalty fees for 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 total revenue from royalty fees in 2023 was $264,890. This indicates the income Engineering For Kids receives from its franchisees based on a percentage of their gross sales. Royalty fees are a primary revenue stream for franchisors, and this figure provides insight into the financial health and stability of the Engineering For Kids franchise system.
For a prospective franchisee, understanding the franchisor's revenue from royalty fees is crucial. It reflects the overall sales performance of existing franchises and the franchisor's ability to generate income from its brand. A higher royalty fee revenue generally suggests a more successful and well-established franchise system.
However, franchisees should also consider the royalty fee structure outlined in the franchise agreement to understand how these fees are calculated and what percentage of their sales will be contributed to the franchisor. This information, combined with the franchisor's royalty fee revenue, can help potential franchisees assess the financial viability and potential return on investment of an Engineering For Kids franchise.
It's also worth noting that Engineering For Kids also earns revenue from other sources such as brand fees, technology fees, franchise fees, and late fees. Reviewing all revenue streams can provide a more comprehensive understanding of the franchisor's financial performance and stability.