What were the total assets of Boomerang Franchise, LLC (Hyper Kidz) as of December 31, 2021?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
SPECTIVE FRANCHISEES OR SELLERS OF FRANCHISES SHOULD BE ADVISED THAT NO CERTIFIED PUBLIC ACCOUNTANT HAD AUDITED THESE FIGURES OR EXPRESSED HIS/HER OPINION WITH REGARD TO THE CONSENT OR FORM.
Boomerang Franchise, LLC
Balance Sheet
As of June 19, 2024
| TOTAL | |
|---|---|
| ASSETS | |
| Current Assets | |
| Bank Accounts | |
| 10000 - Boomerang Franchise, LLC (1773) | 72,387.56 |
| Marketing (8762) | 11,267.32 |
| Total Bank Accounts | $83,654.88 |
| Other Current Assets | |
| 10300 Prepaid Royalties - Unearned income | 0.00 |
| 11000 - Due To/From Ashburn - HK Ashburn | 0.00 |
| 11200 Due to/From Chicago - HK Bolingbrook | -746.19 |
| 11250 Due To/From Hyperkidz - HK Columbia | 243,052.17 |
| 11350 Due To/From Crofton/Gambrills - HK Bowie | 0.00 |
| 11400 - Due To/From Owings Mill - HK Baltimore | 0.00 |
| 11450 Due To/From Alexandria - HK Alexandria | 0.00 |
| Total Other Current Assets | $242,305.98 |
| Total Current Assets | $325,960.86 |
| Other Assets | |
| 12300 - Accumulated Amortization | -1,253.25 |
| 15000 - Organizational Costs | 0.00 |
| 15010 - Start Up Costs | 0.00 |
| Total Other Assets | $ -1,253.25 |
| TOTAL ASSETS | $324,707.61 |
| LIABILITIES AND EQUITY | |
| Liabilities | |
| Current Liabilities | |
| Other Current Liabilities | |
| 20000 - Loan Payable - EDIL Loan | 79,000.00 |
| 20100 Loan Payable - Synergy | -2,000.00 |
| 23000 Accrued Interest Payable | 6,745.00 |
| 25000 Non-Refundable Deferred Franchise Sales | 177,795.00 |
| Total Other Current Liabilities | $261,540.00 |
| Total Current Liabilities | $261,540.00 |
| Total Liabilities | $261,540.00 |
| Equity | |
| 30100 - Owner's Inv |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the total assets of Boomerang Franchise, LLC as of December 31, 2021, were $324,707.61. This figure represents the sum of the company's current assets ($325,960.86) and other assets (-$1,253.25). Current assets include bank accounts totaling $83,654.88 and other current assets of $242,305.98. Other assets primarily consist of accumulated amortization, which reduces the overall asset value.
For a prospective Hyper Kidz franchisee, understanding the asset composition of the franchisor can provide insights into the financial health and stability of the company. A higher asset value generally indicates a stronger financial position, which can be reassuring for franchisees who are investing in the brand. However, it's also important to examine the types of assets the company holds. In this case, a significant portion of the assets are classified as "Due To/From" various Hyper Kidz locations, indicating inter-company transactions that may require further investigation to fully understand their nature and potential impact.
It is also important to note that the liabilities of Hyper Kidz as of December 31, 2021, totaled $261,540.00, consisting entirely of current liabilities. This includes items such as a loan payable, accrued interest, and non-refundable deferred franchise sales. Equity totaled $63,167.61. Analyzing the relationship between assets, liabilities, and equity can provide a more comprehensive view of the company's financial leverage and solvency. Prospective franchisees should consider these figures in conjunction with other financial performance metrics, such as revenue and net income, to assess the overall financial viability of the Hyper Kidz franchise system.
In summary, while the total assets figure provides a snapshot of Hyper Kidz's financial resources, a thorough due diligence process should involve a deeper analysis of the balance sheet, income statement, and cash flow statement to gain a complete understanding of the franchisor's financial condition and its ability to support its franchisees.