What were the total operating expenses for Hyper Kidz in 2021?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| AS OF DECEMBER 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| ASSETS: | ||||
| CURRENT ASSETS | ||||
| Cash and equivalents | $ | 18,203 | $ | 7,376 |
| Accounts receivable | 20,155 | 18,006 | ||
| TOTAL CURRENT ASSETS | 38,358 | 25,382 | ||
| TOTAL ASSETS | $ | 38,358 | $ | 25,382 |
| LIABILITIES AND MEMBERS' (DEFICIT): | ||||
| CURRENT LIABILITIES | ||||
| Accounts payable and accrued expenses | $ | 6,745 | $ | 3,813 |
| Non-refundable deferred franchise sales, current portion | 20,700 | 7,900 | ||
| Notes payable, current portion | - | 341 | ||
| TOTAL CURRENT LIABILITIES | 27,445 | 12,054 | ||
| LONG-TERM LIABILITIES | ||||
| Non-refundable deferred franchise sales | 157,095 | 55,958 | ||
| Notes payable | 79,000 | 78,659 | ||
| TOTAL LIABILITIES | 263,540 | 146,671 | ||
| MEMBERS' (DEFICIT) | ||||
| Members' equity (deficit) | (62,130) | 55,630 | ||
| Due from affiliates, net | (163,052) | (176,919) | ||
| TOTAL MEMBERS' (DEFICIT) | (225,182) | (121,289) | ||
| TOTAL LIABILITIES AND | ||||
| MEMBERS' (DEFICIT) | $ | 38,358 | $ | 25,382 |
BOOMERANG FRANCHISE, LLC STATEMENTS OF OPERATIONS
2023 2022 2021 REVENUES Franchise sales $ 14,063 $ 4,279 $ 3,950 Royalty fees 75,919 84,618 68,260 Other revenue - - 2,827 Royalty discount - - (5,000) Equipment sales 49,823 11,473 - TOTAL REVENUE 139,805 100,370 70,037 OPERATING EXPENSES Professional fees 27,056 23,106 8,577 Payroll and related costs 26,000 12,000 - General and administrative 55,428 5,771 20,122 Advertising and Promotion 7,283 4,208 385 TOTAL OPERATING EXPENSES 115,767 45,085 29,084 OPERATING INCOME 24,038
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the total operating expenses for the company in 2021 were $29,084. These expenses include several categories. Professional fees totaled $8,577. General and administrative expenses amounted to $20,122. Advertising and promotion costs were $385. There were no payroll and related costs listed for 2021.
Understanding these operating expenses is crucial for potential Hyper Kidz franchisees. It provides insight into the costs the company incurs to run its operations, which can serve as a benchmark when franchisees manage their own expenses. While this data reflects the franchisor's expenses, franchisees should expect a different cost structure for individual locations.
It is important to note that these figures represent the franchisor's expenses and may not directly translate to the operating expenses of a franchise location. Factors such as location, staffing levels, and local marketing efforts can significantly impact a franchisee's operating expenses. Therefore, prospective franchisees should conduct thorough due diligence and create detailed financial projections based on their specific circumstances.