What was the total income for Hyper Kidz, according to the financial statements?
Hyper_Kidz Franchise · 2024 FDDAnswer 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.