What was the total balance for Hyper Kidz as of December 31, 2019?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
INCOME (EXPENSE) | (2,993) | 5,220 | 6,000 | | | NET INCOME | $ 52,292 | $ 46,173 | $ 110,241 | |
STATEMENTS OF CHANGES IN MEMBERS' EQUITY (DEFICIT) BOOMERANG FRANCHISE, LLC FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
| BALANCE, DECEMBER 31, 2019 | $ | (24,490) | $ | (15,010) | $ | (39,500) | |--------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the total balance as of December 31, 2019, was reported as a deficit of $39,500. This figure represents the overall financial standing of the company at the close of that fiscal year. It's important to note that this balance incorporates various financial activities, including member distributions and net income.
Specifically, the balance is calculated from member distributions of $(100,386) and net income of $110,241. These figures are combined to arrive at the final balance of $(39,500). This indicates that, at the end of 2019, the company's liabilities and obligations exceeded its assets, resulting in a deficit.
A prospective franchisee should carefully consider this information, along with other financial statements and disclosures in the FDD, to assess the financial health and stability of Hyper Kidz. Understanding the factors contributing to this balance is crucial for making an informed investment decision. It is advisable to seek professional financial advice to interpret these figures in the context of the overall franchise opportunity.