What was the net income for Hyper Kidz in 2022?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
68 | | 1,468 | | Net income | | 52,292 | | | | - | | BALANCE, DECEMBER 31, 2022 | $ | 55,630 | $ | (176,919) | $ | (173,581) |
FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020 BOOMERANG FRANCHISE, LLC STATEMENTS OF CASH FLOWS
| 2022 | 2021 | 2020 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income) | $ 52,292 | $ 46,173 | $ 110,241 |
| Adjustments to reconcile net income to net | |||
| cash provided by operating activities: | |||
| Recognition of non-refundable deferred franchise sales | (4,279) | (3,950) | (6,913) |
| Changes in assets and liabilities: | |||
| Accounts receivable | (18,006) | ||
| Accrued expense | 2,993 | 820 | - |
| Royalties collected in advance | (36,612) | 36,612 | - |
| Non-refundable deferred franchise fees | 39,500 | ||
| Net cash provided by operating activities | 35,888 | 79,655 | 103,328 |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Proceeds from notes payable | - | 79,000 | - |
| Advances to affiliates, net | 1,468 | (163,377) | - |
| Member contributions | - | 1,800 | - |
| Member distributions | (30,000) | - | (100,386) |
| Net cash (used) by financing activities | (28,532) | (82,577) | (100,386) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the net income for 2022 was $52,292. This figure represents the company's profitability after accounting for all revenues, operating expenses, and other income and expenses during that year. This information is crucial for potential franchisees as it provides insight into the financial performance of the Hyper Kidz franchise system.
Specifically, the statement of operations shows that Hyper Kidz's total revenue for 2022 was $100,370. This revenue was derived from franchise sales ($4,279), royalty fees ($84,618), and equipment sales ($11,473). The company's operating expenses totaled $45,085, which included professional fees ($23,106), payroll and related costs ($12,000), general and administrative expenses ($5,771), and advertising and promotion ($4,208). After deducting operating expenses from total revenue, the operating income was $55,285. Other expenses, primarily interest expense ($2,993), resulted in the final net income of $52,292.
For a prospective franchisee, understanding the net income and its components is essential for evaluating the financial viability of investing in a Hyper Kidz franchise. It allows them to assess the franchisor's financial stability and potential for future growth. Additionally, reviewing the various revenue streams and expense categories can help franchisees understand the key factors that drive profitability within the Hyper Kidz system. This information, combined with other due diligence, can inform their decision-making process and help them determine whether the Hyper Kidz franchise aligns with their investment goals.