What were the total assets of Boomerang Franchise, LLC (Hyper Kidz) as of December 31, 2022?
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, 2022, were $324,707.61. These assets are composed of several categories. Current assets include $83,654.88 in total bank accounts and $242,305.98 in other current assets, resulting in total current assets of $325,960.86. Other assets include $-1,253.25 in accumulated amortization.
Understanding the composition of these assets is crucial for prospective Hyper Kidz franchisees. The current assets, particularly the bank accounts and other current assets, reflect the company's short-term liquidity and ability to meet its immediate obligations. The presence of significant 'Due To/From' balances with various Hyper Kidz locations indicates inter-company financial transactions that franchisees should be aware of. These balances could reflect how funds are managed and distributed within the franchise system.
The negative value for accumulated amortization reduces the overall asset value. Amortization is the process of expensing the cost of an intangible asset over its useful life. A negative accumulated amortization suggests that the company has been expensing these costs, which is a standard accounting practice.
Overall, the asset figures provide a snapshot of Hyper Kidz's financial health and structure as of the end of 2022. Potential franchisees should review these figures carefully, ideally with a financial advisor, to understand the financial stability and operational dynamics of the franchise system.