As of June 19, 2024, what was the total amount of Retained Earnings for Hyper Kidz?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
SPECTIVE FRANCHISEES OR SELLERS OF FRANCHISES SHOULD BE ADVISED THAT NO CERTIFIED PUBLIC ACCOUNTANT HAD AUDITED THESE FIGURES OR EXPRESSED HIS/HER OPINION WITH REGARD TO THE CONSENT OR FORM.
Boomerang Franchise, LLC
Balance Sheet
As of June 19, 2024
| TOTAL | |
|---|---|
| ASSETS | |
| Current Assets | |
| Bank Accounts | |
| 10000 - Boomerang Franchise, LLC (1773) | 72,387.56 |
| Marketing (8762) | 11,267.32 |
| Total Bank Accounts | $83,654.88 |
| Other Current Assets | |
| 10300 Prepaid Royalties - Unearned income | 0.00 |
| 11000 - Due To/From Ashburn - HK Ashburn | 0.00 |
| 11200 Due to/From Chicago - HK Bolingbrook | -746.19 |
| 11250 Due To/From Hyperkidz - HK Columbia | 243,052.17 |
| 11350 Due To/From Crofton/Gambrills - HK Bowie | 0.00 |
| 11400 - Due To/From Owings Mill - HK Baltimore | 0.00 |
| 11450 Due To/From Alexandria - HK Alexandria | 0.00 |
| Total Other Current Assets | $242,305.98 |
| Total Current Assets | $325,960.86 |
| Other Assets | |
| 12300 - Accumulated Amortization | -1,253.25 |
| 15000 - Organizational Costs | 0.00 |
| 15010 - Start Up Costs | 0.00 |
| Total Other Assets | $ -1,253.25 |
| TOTAL ASSETS | $324,707.61 |
| LIABILITIES AND EQUITY | |
| Liabilities | |
| Current Liabilities | |
| Other Current Liabilities | |
| 20000 - Loan Payable - EDIL Loan | 79,000.00 |
| 20100 Loan Payable - Synergy | -2,000.00 |
| 23000 Accrued Interest Payable | 6,745.00 |
| 25000 Non-Refundable Deferred Franchise Sales | 177,795.00 |
| Total Other Current Liabilities | $261,540.00 |
| Total Current Liabilities | $261,540.00 |
| Total Liabilities | $261,540.00 |
| Equity | |
| 30100 - Owner's Inv |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the Retained Earnings as of June 19, 2024, was $139,174.58. Retained earnings represent the accumulated net income of the company that has been reinvested back into the business rather than distributed to owners. This figure is a key indicator of the company's financial health and its ability to fund future growth and operations.
For a prospective Hyper Kidz franchisee, understanding the retained earnings is important because it provides insight into the financial stability of the franchisor, Boomerang Franchise, LLC. A healthy retained earnings balance suggests that the franchisor has been profitable and has managed its finances effectively. This can be reassuring for franchisees who are considering investing in the franchise system.
However, it's also important to consider retained earnings in conjunction with other financial metrics, such as total assets, liabilities, and net income, to get a comprehensive view of the franchisor's financial condition. Additionally, franchisees should investigate how the retained earnings are being used, whether for expansion, debt reduction, or other strategic initiatives, as this can impact the long-term prospects of the franchise system. The balance sheet also shows a Net Income of $215,297.59 for the same period.