What was the total amount of Hyper Kidz equipment sales in 2020?
Hyper_Kidz Franchise · 2024 FDDAnswer 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.