What were the total royalty fees collected by 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 royalty fees collected in 2023 were $264,890. This represents the income Engineering For Kids received 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 size of the Engineering For Kids franchise system.
For a prospective franchisee, understanding the franchisor's revenue from royalty fees is crucial. It indicates the scale of the existing franchise network and the overall revenue being generated by the brand. A higher royalty fee income generally suggests a more established and potentially successful franchise system. However, it is important to consider this figure in conjunction with other financial metrics, such as operating expenses and net income, to get a comprehensive view of the franchisor's financial performance.
It's also worth noting that Engineering For Kids also collected $52,752 in brand fees, $37,500 in technology fees, $34,000 in franchise fees, and $2,875 in late fees during 2023. These additional revenue streams contribute to the overall financial stability of the franchisor and may reflect different aspects of the services and support provided to franchisees. Reviewing these figures alongside royalty fees offers a more complete picture of how Engineering For Kids generates revenue and supports its franchise network.