What was the amount of non-refundable deferred franchise sales (long-term) for Hyper Kidz in 2022?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
it, significant audit findings, and certain internal control—related matters that we identified during the audit.
Ft. Collins, Colorado March 11, 2023
BOOMERANG FRANCHISE, LLC BALANCE SHEETS AS OF DECEMBER 31, 2022 AND 2021
| 2022 | 2021 | |||||
|---|---|---|---|---|---|---|
| ASSETS: | ||||||
| CURRENT ASSETS | ||||||
| Cash and equivalents | $ | 7,376 | $ | 20 | ||
| Accounts receivable | 18,006 | - | ||||
| TOTAL CURRENT ASSETS | 25,382 | 20 | ||||
| TOTAL ASSETS | $ | 25,382 | $ | 20 | ||
| LIABILITIES AND MEMBERS' (DEFICIT): | ||||||
| CURRENT LIABILITIES | ||||||
| Royalties collected in advance | $ | - | $ | 36,612 | ||
| Non-refundable deferred franchise sales, current portion | 7,900 | 3,950 | ||||
| Accrued expenses | 3,813 | 820 | ||||
| Notes payable, current portion | 341 | - | ||||
| TOTAL CURRENT LIABILITIES | 12,054 | 41,382 | ||||
| LONG-TERM LIABILITIES | ||||||
| Non-refundable deferred franchise sales | 55,958 | 24,687 | ||||
| Notes payable | 78,659 | 79,000 | ||||
| TOTAL LIABILITIES | 146,671 | 145,069 | ||||
| MEMBERS' (DEFICIT) | ||||||
| Memb |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the amount of non-refundable deferred franchise sales (long-term) as of December 31, 2022, was $55,958. This figure represents the portion of franchise fees that Hyper Kidz has collected but not yet recognized as revenue, and which are not subject to refund. These are classified as long-term liabilities on the balance sheet.
For a prospective Hyper Kidz franchisee, this deferred revenue indicates the financial obligations Hyper Kidz has to provide services or fulfill agreements related to these franchise fees in the future. The non-current portion of non-refundable deferred franchise sales reflects Hyper Kidz's longer-term commitments to its franchisees.
Understanding the breakdown between current and long-term deferred revenue can give a potential franchisee insight into the financial stability and future obligations of Hyper Kidz. It is important to note that this deferred revenue will be recognized over time as Hyper Kidz fulfills its obligations to franchisees, such as providing training, support, and access to its brand and systems.