What was the total amount of notes payable for Hyper Kidz in 2021?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
it, significant audit findings, and certain internal control—related matters that we identified during the audit.
Ft. Collins, Colorado March 11, 2023
BOOMERANG FRANCHISE, LLC BALANCE SHEETS AS OF DECEMBER 31, 2022 AND 2021
| 2022 | 2021 | |||||
|---|---|---|---|---|---|---|
| ASSETS: | ||||||
| CURRENT ASSETS | ||||||
| Cash and equivalents | $ | 7,376 | $ | 20 | ||
| Accounts receivable | 18,006 | - | ||||
| TOTAL CURRENT ASSETS | 25,382 | 20 | ||||
| TOTAL ASSETS | $ | 25,382 | $ | 20 | ||
| LIABILITIES AND MEMBERS' (DEFICIT): | ||||||
| CURRENT LIABILITIES | ||||||
| Royalties collected in advance | $ | - | $ | 36,612 | ||
| Non-refundable deferred franchise sales, current portion | 7,900 | 3,950 | ||||
| Accrued expenses | 3,813 | 820 | ||||
| Notes payable, current portion | 341 | - | ||||
| TOTAL CURRENT LIABILITIES | 12,054 | 41,382 | ||||
| LONG-TERM LIABILITIES | ||||||
| Non-refundable deferred franchise sales | 55,958 | 24,687 | ||||
| Notes payable | 78,659 | 79,000 | ||||
| TOTAL LIABILITIES | 146,671 | 145,069 | ||||
| MEMBERS' (DEFICIT) | ||||||
| Members' equity (deficit) | 55,630 | 33,338 | ||||
| Due from affiliates, net | (176,919) | (178,387) | ||||
| TOTAL MEMBERS' (DEFICIT) | (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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the total notes payable in 2021 was $79,000. This amount is categorized as a long-term liability on the balance sheet. Additionally, in 2021, Hyper Kidz had no notes payable listed as a current liability.
The note payable is related to a loan with the Small Business Administration (SBA). The face amount of the loan was $79,000, with repayment terms of 360 monthly installments of $407, including interest at 3.75%. The final payment is due September 21, 2050, and the loan is collateralized by the assets of the company.
For a prospective Hyper Kidz franchisee, understanding the franchisor's debt obligations can provide insight into the financial stability of the company. Reviewing the repayment terms and collateralization of the notes payable can help assess the franchisor's financial commitments and potential risks. It's also important to note that the company also borrowed $6,040 from the SBA under the Paycheck Protection Program for COVID-19 relief, which was forgiven in full by the SBA as of December 31, 2021.