What was the total amount of royalty fees Hyper Kidz collected in 2021?
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 royalty fees collected in 2021 amounted to $68,260. This figure reflects the income Hyper Kidz received from its franchisees based on a percentage of their gross sales. Royalty fees are a standard component of franchise agreements and serve as ongoing compensation for the use of the Hyper Kidz brand, operational systems, and support.
In addition to royalty fees, Hyper Kidz also reported franchise sales of $3,950, other revenue of $2,827, and a royalty discount of ($5,000) in 2021. These figures, combined with equipment sales of $0, contributed to a total revenue of $70,037 for the year. Understanding the different revenue streams and associated costs provides prospective franchisees with insights into the financial health and stability of Hyper Kidz.
The financial statement also indicates that Hyper Kidz had operating expenses of $29,084 in 2021, resulting in an operating income of $40,953. After accounting for other income and expenses, the net income for Hyper Kidz in 2021 was $46,173. Reviewing these financial details helps potential franchisees assess the overall profitability and financial management of the Hyper Kidz franchise system.