What was the amount of member distributions for Hyper Kidz in 2023?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| BALANCE, DECEMBER 31, 2020 | $ | (14,635) | $ | (15,010) | $ | (29,645) |
|---|---|---|---|---|---|---|
| Member contributions | 1,800 | 1,800 | ||||
| Advances to affiliates, net | (163,377) | (163,377) | ||||
| Net income | 46,173 | 46,173 | ||||
| BALANCE, DECEMBER 31, 2021 | 33,338 | (178,387) | (145,049) | |||
| Member distributions | (30,000) | (30,000) | ||||
| Advances to affiliates, net | 1,468 | 1,468 | ||||
| Net income | 52,292 | - | ||||
| BALANCE, DECEMBER 31, 2022 | 55,630 | (176,919) | (173,581) | |||
| Member dis |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, member distributions in 2023 totaled $138,866. This figure reflects the amount of money distributed to members or owners of the Boomerang Franchise, LLC during that year. These distributions are a component of the company's financing activities.
For a prospective Hyper Kidz franchisee, understanding member distributions can provide insight into the financial management and profitability of the franchisor. While distributions indicate that the company is generating enough cash to return capital to its members, it's important to consider the overall financial health of the company. A high distribution amount doesn't necessarily guarantee future success or stability.
It is also important to note that the net effect of financing activities in 2023 was a decrease of $124,999, which includes the member distributions and advances to affiliates. Reviewing these figures in the context of Hyper Kidz's complete financial statements, including the balance sheet and income statement, will give potential franchisees a more comprehensive understanding of the company's financial performance and stability.