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What was the total amount of Hyper Kidz equipment sales in 2020?

Hyper_Kidz Franchise · 2024 FDD

Answer from 2024 FDD Document

) | | (121,289) | | (145,049) | | | | TOTAL LIABILITIES AND | | | | | | | | MEMBERS' (DEFICIT) | $ | 25,382 | $ | 20 | | |

BOOMERANG FRANCHISE, LLC STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020

2022 2021 2020
REVENUES
Franchise sales $ 4,279 $ 3,950 $ 6,913
Royalty fees 84,618 68,260 -
Other revenue - 2,827 -
Royalty discount - (5,000)
Equipment sales 11,473 - 246,351
TOTAL REVENUE 100,370 70,037 253,264
COST OF SALES - - 127,536
GROSS PROFIT 100,370 70,037 125,728
OPERATING EXPENSES
Professional fees 23,106 8,577 20,025
Payroll and related costs 12,000 - -
General and administrative 5,771 20,122 1,462
Advertising and Promotion 4,208 385 -
TOTAL OPERATING EXPENSES 45,085 29,084 21,487
OPERATING INCOME

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)

What This Means (2024 FDD)

According to Hyper Kidz's 2024 Franchise Disclosure Document, the total equipment sales for the company in 2020 amounted to $246,351. This figure represents the revenue Hyper Kidz generated from selling equipment, presumably to franchisees or other related parties. Equipment sales can be a significant revenue stream for franchisors, especially when new franchises are being established.

For a prospective Hyper Kidz franchisee, this number provides insight into the franchisor's business model and revenue sources. A high number could indicate a reliance on initial setup fees and equipment packages for new locations. It's important to note that equipment sales revenue can fluctuate depending on the number of new franchises opened in a given year.

Reviewing equipment sales trends over multiple years, as presented in the FDD, helps to understand the stability and predictability of this revenue stream. A potential franchisee should consider how these sales might affect the ongoing support and services provided by Hyper Kidz, as well as the overall financial health of the company. Understanding the details of required equipment purchases is crucial during due diligence.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.