What is the total reported value of Hyper Kidz's current assets?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
SPECTIVE FRANCHISEES OR SELLERS OF FRANCHISES SHOULD BE ADVISED THAT NO CERTIFIED PUBLIC ACCOUNTANT HAD AUDITED THESE FIGURES OR EXPRESSED HIS/HER OPINION WITH REGARD TO THE CONSENT OR FORM.
Boomerang Franchise, LLC
Balance Sheet
As of June 19, 2024
| TOTAL | |
|---|---|
| ASSETS | |
| Current Assets | |
| Bank Accounts | |
| 10000 - Boomerang Franchise, LLC (1773) | 72,387.56 |
| Marketing (8762) | 11,267.32 |
| Total Bank Accounts | $83,654.88 |
| Other Current Assets | |
| 10300 Prepaid Royalties - Unearned income | 0.00 |
| 11000 - Due To/From Ashburn - HK Ashburn | 0.00 |
| 11200 Due to/From Chicago - HK Bolingbrook | -746.19 |
| 11250 Due To/From Hyperkidz - HK Columbia | 243,052.17 |
| 11350 Due To/From Crofton/Gambrills - HK Bowie | 0.00 |
| 11400 - Due To/From Owings Mill - HK Baltimore | 0.00 |
| 11450 Due To/From Alexandria - HK Alexandria | 0.00 |
| Total Other Current Assets | $242,305.98 |
| Total Current Assets | $325,960.86 |
| Other Assets | |
| 12300 - Accumulated Amortization | -1,253.25 |
| 15000 - Organizational Costs | 0.00 |
| 15010 - Start Up Costs | 0.00 |
| Total Other Assets | $ -1,253.25 |
| TOTAL ASSETS | $324,707.61 |
| LIABILITIES AND EQUITY | |
| Liabilities | |
| Current Liabilities | |
| Other Current Liabiliti |
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 assets were reported in two separate balance sheets. One balance sheet lists the total current assets as $325,960.86. This includes bank accounts totaling $83,654.88 and other current assets totaling $242,305.98. The other balance sheet shows the total current assets as $38,358 as of December 31, 2023, and $25,382 as of December 31, 2022. These assets include cash and equivalents, and accounts receivable.
It is important to note that there are two different balance sheets included in the Hyper Kidz FDD. The first balance sheet does not specify a date, while the second balance sheet specifies the amounts as of December 31, 2023, and December 31, 2022. The difference in the total current assets between the two balance sheets is significant, which could be due to various factors such as the timing of the statements or different accounting methods.
A prospective franchisee should inquire with Hyper Kidz about the reasons for the discrepancy between these two balance sheets. Understanding the composition and valuation of current assets is crucial for assessing the financial health and stability of the franchise system. It is also important to understand which of these balance sheets is most representative of the current financial state of Hyper Kidz.