What was the cash balance at the end of 2022 for Hyper Kidz?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| 13,867 | | 13,867 |
| Net income | | 21,106 | | - | | - | | BALANCE, DECEMBER 31, 2023 | $ | (62,130) | $ | (163,052) | $ | (298,580) |
BOOMERANG FRANCHISE, LLC STATEMENTS OF CASH FLOWS
| YEARS ENDED DECEMBER 31, | ||||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2021 | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| Net income) | $ | 21,106 | $ | 52,292 | $ | 46,173 |
| Adjustments to reconcile net income to net | ||||||
| cash provided by operating activities: | ||||||
| Recognition of non-refundable deferred franchise sales | (14,063) | (4,279) | (3,950) | |||
| Changes in assets and liabilities: | ||||||
| Accounts receivable | (2,149) | (18,006) | ||||
| Accounts payable and accrued expense | 2,932 | 2,993 | 820 | |||
| Royalties collected in advance | - | (36,612) | 36,612 | |||
| Non-refundable deferred franchise fees | 128,000 | 39,500 | ||||
| Net cash provided by operating activities | 135,826 | 35,888 | 79,655 | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Proceeds from notes payable | - | - | 79,000 | |||
| Advances to affiliates, net | 13,867 | 1,468 | (163,377) | |||
| Member contributions | - | - | 1,800 | |||
| Member distributions | (138,866) | (30,000) | - | |||
| Net cash (used) by financing activities | (124,999) | (28,532) | (82,577) | |||
| NET INCREASE (DECREASE) IN CASH | 10,827 | 7,356 | (2,922) | |||
| CASH, BEGIN |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the cash balance at the end of 2022 was $7,376. This figure represents the total amount of cash that Boomerang Franchise, LLC (the parent company of Hyper Kidz) had on hand as of December 31, 2022. This number is derived from the cash flow statement, which tracks the movement of cash both into and out of the company over a period of time. The cash flow statement considers cash from operating, financing, and investing activities.
For a prospective Hyper Kidz franchisee, this figure provides a snapshot of the financial health and liquidity of the franchisor at that specific point in time. While not necessarily indicative of future performance, it can offer some insight into the company's ability to manage its finances. A higher cash balance generally suggests greater financial stability.
It is important to note that this cash balance reflects the financial position of the franchisor, Boomerang Franchise, LLC, and not the individual franchise locations. Franchisees should focus on their own financial performance and cash management within their specific Hyper Kidz business. Reviewing trends in cash flow over multiple years (2021, 2022, and 2023) can provide a more comprehensive understanding of the franchisor's financial trajectory.