What is the estimated amount of non-refundable Hyper Kidz franchise fees to be recognized in 2026?

According to the 2024 Hyper Kidz Franchise Disclosure Document, the estimated amount of non-refundable franchise fees to be recognized in 2026 is $20,700, as reported on December 31, 2023. This figure represents the portion of initial franchise fees that Hyper Kidz expects to recognize as revenue during that year. These fees are initially deferred and then recognized over time as Hyper Kidz fulfills its obligations to the franchisee.

For a prospective Hyper Kidz franchisee, this indicates the franchisor's revenue recognition schedule for franchise fees. The consistent amount recognized each year suggests a systematic approach to fulfilling obligations and recognizing revenue. This also demonstrates how Hyper Kidz accounts for initial franchise fees, deferring recognition until the services associated with those fees are provided.

It's important to note that this is an estimate based on the information available as of December 31, 2023, and actual figures may vary. Franchisees should understand that these non-refundable fees contribute to Hyper Kidz's revenue stream and are tied to the services and support the franchisor provides. Reviewing these financial statements helps potential franchisees understand the financial structure of the Hyper Kidz franchise system.