What was the range of non-refundable franchise fees collected by Hyper Kidz for the years after 2027?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
rred Franchise Fees and Franchise Acquisition Costs*
Estimated revenues and franchise acquisition costs to be recognized in future periods related to nonrefundable deferred franchise fees as reported at December 31, 202 is as follows:
| | Non-refundable Franchise Fees | |--------------------------|----------------------------------| | Year ending December 31: | | | 2024 | $ 20,700 | | 2025 | 20,700 | | 2026 | 20,700 | | 2027 | 20,700 | | 2028 | 20,700 | | Thereafter | 74,295 $ 177,795 |
NOTE 2 – CONTRACT BALANCES (CONTINUED)
Disaggregation of Revenues
Disaggregated reve
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the non-refundable franchise fees collected for the years after 2027 range from $74,295 to $177,795, and from $24,358 to $63,858. This represents the estimated recognition of non-refundable deferred franchise fees.
These figures are estimates of revenues to be recognized in future periods related to nonrefundable deferred franchise fees as reported at December 31, 202. It is important to note that these are not actual cash collections, but rather accounting recognitions of previously deferred revenue.
A prospective Hyper Kidz franchisee should seek clarification from the franchisor regarding the specific methodology used to determine these estimated recognitions and how they might impact the franchisee's financial projections. Understanding the difference between cash flow and revenue recognition is crucial for assessing the financial health and potential profitability of a Hyper Kidz franchise.