What was the net amount of advances to affiliates for Hyper Kidz as of December 31, 2021?
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, BEGINNING | 7,376 | 20 | 2,942 | |||
| CASH, ENDING | $ | 18,203 | $ | 7,376 | $ | 20 |
| SUPPLEMENTAL DISCLOSURES | ||||||
| Cash paid for interest | $ | - | $ | - | $ | - |
| Cash paid for |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the net amount of advances to affiliates as of December 31, 2021, was a negative $163,377. This figure reflects the net cash flow related to advances made to or received from Hyper Kidz's affiliates during that year.
This negative value suggests that, on balance, Hyper Kidz provided more in advances to its affiliates than it received back from them during 2021. These advances are part of the cash flows from financing activities, indicating how the company manages its internal funding relationships with its related entities.
Prospective franchisees should be aware of these related-party transactions, as they can impact the financial health and stability of the franchise system. It's important to understand the nature of these advances, their terms, and their potential impact on Hyper Kidz's overall financial performance. Further investigation into these transactions can provide a clearer picture of the financial relationships within the Hyper Kidz organization.