What was the total amount of member contributions for Hyper Kidz as of December 31, 2021?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
NET INCOME* $ 21,106 $ 52,292 $ 46,173 YEARS ENDED DECEMBER 31,
STATEMENTS OF CHANGES IN MEMBERS' EQUITY (DEFICIT) BOOMERANG FRANCHISE, LLC YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021
| BALANCE, DECEMBER 31, 2020 | $ | (14,635) | $ | (15,010) | $ | (29,645) |
|---|---|---|---|---|---|---|
| Member contributions | 1,800 | 1,800 | ||||
| Advances to affiliates, net | (163,377) | (163,377) | ||||
| Net income | 46,173 | 46,173 | ||||
| BALANCE, DECEMBER 31, 2021 | 33,338 | (178,387) | (145,049) | |||
| Member distributions | (30,000) | (30,000) | ||||
| Advances to affiliates, net | 1,468 | 1,468 | ||||
| Net income | 52,292 | - | ||||
| BALANCE, DECEMBER 31, 2022 | 55,630 | (176 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, as of December 31, 2021, the member contributions totaled $1,800. This figure reflects the cumulative contributions made by members up to that date. This information is derived from the Statements of Changes in Members' Equity, which tracks investments into the company.
For a prospective Hyper Kidz franchisee, understanding member contributions can provide insight into the financial structure and capitalization of the franchise company. Member contributions represent funds invested by the owners or members of the LLC, which can be used to fund operations, expansion, or other business activities. It is important to note that member contributions are distinct from revenues generated from franchise sales, royalties, or other operational activities.
Reviewing the changes in member contributions over time, alongside other financial metrics such as net income and member distributions, can offer a more comprehensive view of the financial health and stability of Hyper Kidz. A potential franchisee should analyze these figures in conjunction with other sections of the FDD, and possibly consult with a financial advisor, to assess the overall financial risk and opportunity associated with investing in a Hyper Kidz franchise.