What was the total revenue for Hyper Kidz in 2022?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
) | | (121,289) | | (145,049) | | | | TOTAL LIABILITIES AND | | | | | | | | MEMBERS' (DEFICIT) | $ | 25,382 | $ | 20 | | |
BOOMERANG FRANCHISE, LLC STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
| 2022 | 2021 | 2020 | ||
|---|---|---|---|---|
| REVENUES | ||||
| Franchise sales | $ 4,279 | $ 3,950 | $ 6,913 | |
| Royalty fees | 84,618 | 68,260 | - | |
| Other revenue | - | 2,827 | - | |
| Royalty discount | - | (5,000) | ||
| Equipment sales | 11,473 | - | 246,351 | |
| TOTAL REVENUE | 100,370 | 70,037 | 253,264 | |
| COST OF SALES | - | - | 127,536 | |
| GROSS PROFIT | 100,370 | 70,037 | 125,728 | |
| OPERATING EXPENSES | ||||
| Professional fees | 23,106 | 8,577 | 20,025 | |
| Payroll and related costs | 12,000 | - | - | |
| General and administrative | 5,771 | 20,122 | 1,462 | |
| Advertising and Promotion | 4,208 | 385 | - | |
| TOTAL OPERATING EXPENSES | 45,085 | 29,084 | 21,487 | |
| OPERATING INCOME |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the total revenue for the company in 2022 was $100,370. This figure is derived from several revenue streams, including franchise sales, royalty fees, and equipment sales. Understanding the composition of this revenue can be valuable for prospective franchisees. Franchise sales contributed $4,279, royalty fees accounted for $84,618, and equipment sales added $11,473 to the total. There was no revenue from other sources and no royalty discounts applied during this period.
Analyzing the revenue streams provides insights into the core business activities of Hyper Kidz. The relatively high royalty fees suggest a mature franchise system with ongoing revenue from existing franchisees. Equipment sales, while smaller, still represent a portion of the revenue, possibly indicating initial setup costs for new franchisees or ongoing equipment upgrades. The absence of 'other revenue' may suggest that Hyper Kidz focuses primarily on its core franchise and royalty model.
For a potential franchisee, this revenue information is crucial for financial planning and forecasting. It offers a benchmark for evaluating the potential revenue generation of a Hyper Kidz franchise. However, it's important to note that this is the franchisor's revenue, not the revenue of individual franchise locations. Prospective franchisees should investigate the revenue performance of existing franchise units to gain a more accurate understanding of their potential earnings. They should also consider factors such as location, market demographics, and local competition, which can significantly impact revenue.