What were the total current liabilities 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) | ||||||
| Memb |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the total current liabilities for 2021 were $41,382. This figure represents the sum of several short-term financial obligations of Hyper Kidz, including royalties collected in advance amounting to $36,612, non-refundable deferred franchise sales current portion of $3,950, and accrued expenses of $820. Notes payable, current portion is $0.
For a prospective Hyper Kidz franchisee, understanding the franchisor's liabilities can provide insights into the financial stability and health of the company. Current liabilities are obligations due within a year, and a high level of current liabilities relative to current assets could indicate potential liquidity issues. However, in this case, the current liabilities are specified, allowing for a clear understanding of what comprises this total.
It's important to note that these figures are specific to the franchisor, Boomerang Franchise, LLC, and may not directly reflect the financial performance or obligations of individual franchise locations. Franchisees should focus on their own financial planning and performance metrics, while also considering the franchisor's financial health as a factor in the overall stability of the franchise system.