According to Hyper Kidz's 2024 Franchise Disclosure Document, the royalties collected in advance in 2022 were ($36,612). This figure appears as a negative value within the cash flow statement, indicating a decrease in cash due to the collection of royalties for future periods. This means Hyper Kidz received $36,612 in royalties during 2022 that were related to services or franchise operations to be performed in a later period.

For a prospective Hyper Kidz franchisee, this indicates that the franchisor sometimes collects royalties in advance. This could be due to various promotional programs, early payment incentives, or specific contractual arrangements. It is important to understand the terms under which Hyper Kidz collects these advance royalties, as it can affect the franchisee's cash flow and financial reporting.

It's also worth noting that in 2021, Hyper Kidz had a positive value of $36,612 for royalties collected in advance, suggesting a reversal of this deferred revenue. This variation from year to year highlights the importance of understanding the specific circumstances and accounting practices related to royalty collection.

Franchisees should inquire about the reasons for these advance royalty collections, the specific accounting treatment, and how it might impact their own financial statements. Understanding these details will help in accurately forecasting cash flow and managing the financial aspects of the Hyper Kidz franchise.