What was the total net income for Hyper Kidz in 2020?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| BALANCE, DECEMBER 31, 2019 | $ | (24,490) | $ | (15,010) | $ | (39,500) |
|---|---|---|---|---|---|---|
| Member distributions | (100,386) | (100,386) | ||||
| Net income | 110,241 | 110,241 | ||||
| BALANCE, DECEMBER 31, 2020 | (14,635) | (15,010) | (29,645) | |||
| Member contributions | 1,800 | 1,800 | ||||
| Advances to affiliates, net | (163,377) | (163,377) | ||||
| Net income | 46,173 | 46,173 | ||||
| BALANCE, DECEMBER 31, 2021 | 33,338 | (178,387) | (145,049) | |||
| Member distributions | (30,000) | (30,000) | ||||
| Advances to affiliates, net | 1,468 | 1,468 | ||||
| Net income | 52,292 | - | ||||
| BALANCE, DECEMBER 31, 2022 | $ | 55,630 | $ | (176,919) | $ | (173,581) |
**FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020 BOOMERANG FRA
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the company's net income for the year 2020 was $110,241. This figure represents the profit remaining after all revenues and expenses were accounted for during that fiscal year.
For a prospective Hyper Kidz franchisee, this historical net income data provides insight into the potential profitability of the franchise system. While past performance is not indicative of future results, a positive net income suggests that the business model has the capacity to generate profits. It is important to consider this figure in conjunction with other financial metrics, such as revenue, expenses, and cash flow, to gain a comprehensive understanding of the company's financial health.
It's also important to note that this net income reflects the performance of Boomerang Franchise, LLC, the entity that grants Hyper Kidz franchises, and not necessarily the performance of individual franchise locations. A prospective franchisee should investigate the financial performance of existing franchise units, as well as the factors that could influence their own location's profitability, such as local market conditions and operating costs.