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What was the total revenue for Hyper Kidz in 2022?

Hyper_Kidz Franchise · 2024 FDD

Answer 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.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.