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What was the total income for Hyper Kidz, according to the financial statements?

Hyper_Kidz Franchise · 2024 FDD

Answer from 2024 FDD Document

stment -Synergy | -37,218.97 | | 30210 - Owner's Draw - Synergy | -114,433.31 | | 40000 - Retained Earnings | 139,174.58 | | Net Income | 215,297.59 | | Total Equity | $63,167.61 | | | |

Boomerang Franchise, LLC

Profit and Loss

May 1 - June 19, 2024

TOTAL
Income
50000 - Sales
50001 Franchise Sale 119,500.00
50200 - Royalty Income 83,215.18
Total 50000 - Sales 202,715.18
Billable Expense Income 38,009.24
Total Income $240,724.42
Cost of Goods Sold
50500 - Cost of Goods Sold 80,000.00
Total Cost of Goods Sold $80,000.00
GROSS PROFIT $160,724.42
Expenses
60100 - Advertising & Marketing 4,788.67
60105 Annual Conference Expenses 4,627.00
Total 60100 - Advertising & Marketing 9,415.67
60110 - Amortization Expense 250.65
60120 - Ask My Accountant 2,000.00
60130 - Bank Charges & Fees 242.83
60140 - Car & Truck 69.50
60165 Dues & subscriptions 146.19
60170 - Insurance 740.05
60180 - Interest Paid 406.79
60190 - Job Supplies 163.40
60201 - Legal & Professional Services 60,393.04
60202 Accountant 3,421.00
Total 60201 - Legal & Professional Services 63,814.04
60210 - Meals & Entertainment 1,096.28
60235 Postage 40.00
60240 - Reimbursable Expenses 200.00
60270 - Taxes & Licenses 1,150.00
60280 - Travel 10.50
60281 - Business Development

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)

What This Means (2024 FDD)

According to Hyper Kidz's 2024 Franchise Disclosure Document, the total income for the company, as shown in their income statement, was $240,724.42. This figure represents the sum of various income streams, including franchise sales of $119,500.00 and royalty income totaling $83,215.18. Additionally, the company generated $38,009.24 in billable expense income, contributing to the overall revenue.

This income is before accounting for the cost of goods sold, which amounted to $80,000.00. After deducting the cost of goods sold from the total income, the company's gross profit was $160,724.42. It's important to note that this gross profit does not yet account for operating expenses.

After subtracting total expenses of $88,465.69, Hyper Kidz's net operating income and net income both amounted to $72,258.73. These figures provide a view of the company's profitability after considering all revenues and expenses. A prospective franchisee should carefully review these financial statements and consult with a financial advisor to understand the implications for their own potential franchise.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.