What was the net income for Boomerang Franchise, LLC, the Hyper Kidz franchisor, in 2023?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| AS OF DECEMBER 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| ASSETS: | ||||
| CURRENT ASSETS | ||||
| Cash and equivalents | $ | 18,203 | $ | 7,376 |
| Accounts receivable | 20,155 | 18,006 | ||
| TOTAL CURRENT ASSETS | 38,358 | 25,382 | ||
| TOTAL ASSETS | $ | 38,358 | $ | 25,382 |
| LIABILITIES AND MEMBERS' (DEFICIT): | ||||
| CURRENT LIABILITIES | ||||
| Accounts payable and accrued expenses | $ | 6,745 | $ | 3,813 |
| Non-refundable deferred franchise sales, current portion | 20,700 | 7,900 | ||
| Notes payable, current portion | - | 341 | ||
| TOTAL CURRENT LIABILITIES | 27,445 | 12,054 | ||
| LONG-TERM LIABILITIES | ||||
| Non-refundable deferred franchise sales | 157,095 | 55,958 | ||
| Notes payable | 79,000 | 78,659 | ||
| TOTAL LIABILITIES | 263,540 | 146,671 | ||
| MEMBERS' (DEFICIT) | ||||
| Members' equity (deficit) | (62,130) | 55,630 | ||
| Due from affiliates, net | (163,052) | (176,919) | ||
| TOTAL MEMBERS' (DEFICIT) | (225,182) | (121,289) | ||
| TOTAL LIABILITIES AND | ||||
| MEMBERS' (DEFICIT) | $ | 38,358 | $ | 25,382 |
BOOMERANG FRANCHISE, LLC STATEMENTS OF OPERATIONS
2023 2022 2021 REVENUES Franchise sales $ 14,063 $ 4,279 $ 3,950 Royalty fees 75,919 84,618 68,260 Other revenue - - 2,827 Royalty discount - - (5,000) Equipment sales 49,823 11,473 - TOTAL REVENUE 139,805 100,370 70,037 OPERATING EXPENSES Professional fees 27,056 23,106 8,577 Payroll and related costs 26,000 12,000 - General and administrative 55,428 5,771 20,122 Advertising and Promotion 7,283 4,208 385 TOTAL OPERATING EXPENSES 115,767 45,085 29,084 OPERATING INCOME 24,038
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Boomerang Franchise, LLC, the franchisor, had a net income of $21,106 for the year ended December 31, 2023. This figure is derived from the company's statement of operations, which also shows net incomes of $52,292 for 2022 and $46,173 for 2021. These figures represent the franchisor's profitability over the past three years.
For a prospective Hyper Kidz franchisee, the franchisor's net income can be an important indicator of the franchisor's financial stability and overall business health. A consistently profitable franchisor is more likely to have the resources to support its franchisees and invest in the growth of the franchise system. While past performance is not necessarily indicative of future results, it can provide some insight into the franchisor's ability to manage its finances and generate profits.
It's important to note that the net income reflects the franchisor's operations only and does not directly translate to the potential profitability of an individual Hyper Kidz franchise. A franchisee's success will depend on various factors, including their ability to manage their business effectively, local market conditions, and the level of support they receive from the franchisor. Therefore, prospective franchisees should carefully review the entire FDD, conduct their own due diligence, and consult with financial advisors to assess the potential risks and rewards of investing in a Hyper Kidz franchise.