According to Hyper Kidz's 2024 Franchise Disclosure Document, the balance as of December 31, 2020, was reported as a deficit. Specifically, the balance was $(14,635) in one column and $(15,010) in another, resulting in a total balance of $(29,645). This figure reflects the overall financial position of Hyper Kidz at the close of 2020.

Several financial activities contributed to this balance. Member contributions amounted to $1,800, while advances to affiliates, net, totaled $(163,377). Additionally, Hyper Kidz reported a net income of $46,173 during this period. These individual transactions, when combined, resulted in the final balance of $(29,645) for the year.

Prospective franchisees should note that a negative balance, or deficit, does not necessarily indicate poor financial health. It is essential to consider the context of the business operations and the specific transactions that influenced the balance. In Hyper Kidz's case, advances to affiliates significantly impacted the overall balance. Understanding these related-party transactions is crucial for assessing the true financial standing of the franchise.

It is also important to note that the financial statements included in the FDD are unaudited. The FDD explicitly advises prospective franchisees to be aware that no certified public accountant has audited these figures or expressed an opinion regarding their consent or form. Therefore, potential franchisees should exercise due diligence and seek professional financial advice to thoroughly evaluate Hyper Kidz's financial condition before making any investment decisions.