What was the total amount of non-refundable franchise fees collected by Hyper Kidz after 2028?

According to Hyper Kidz's 2024 Franchise Disclosure Document, the total amount of non-refundable franchise fees to be recognized after December 31, 2028, is $74,295. This figure represents the estimated revenues related to these fees that Hyper Kidz anticipates recognizing in future periods.

For a prospective Hyper Kidz franchisee, this deferred revenue recognition means that Hyper Kidz has already collected these franchise fees but hasn't yet accounted for them as revenue on their income statement. This is a common accounting practice, especially when services or benefits related to the franchise fee extend over a period of time. The $74,295 indicates the future revenue Hyper Kidz expects to realize from franchise agreements already in place as of the end of 2028.

It's important to note that this is an estimated amount. Actual revenues recognized in those future periods could vary depending on several factors, including the performance of existing franchises and any adjustments to accounting practices. Franchisees should consider this deferred revenue in the context of Hyper Kidz's overall financial health and growth projections. Understanding how franchise fees are recognized over time can provide insights into the franchisor's revenue streams and financial stability.