What was the total Royalty Income for Hyper Kidz between May 1 and June 19, 2024?
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 Liabilities | |
| 20000 - Loan Payable - EDIL Loan | 79,000.00 |
| 20100 Loan Payable - Synergy | -2,000.00 |
| 23000 Accrued Interest Payable | 6,745.00 |
| 25000 Non-Refundable Deferred Franchise Sales | 177,795.00 |
| Total Other Current Liabilities | $261,540.00 |
| Total Current Liabilities | $261,540.00 |
| Total Liabilities | $261,540.00 |
| Equity | |
| 30100 - Owner's Inv |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, a profit and loss statement from May 1 to June 19, 2024 is included. However, the document does not explicitly break out "Royalty Income" as a separate line item on this statement. Instead, the statement shows a "Net Income" of $215,297.59 for that period.
While the FDD provides a net income figure for this specific period, it does not detail the components that make up this income. Royalty fees are typically a significant revenue stream for franchisors like Hyper Kidz, but without a specific royalty income figure, it's impossible to determine the exact amount of royalty income during this period.
A prospective Hyper Kidz franchisee should ask the franchisor for a detailed breakdown of the revenue sources contributing to the net income during this period. Understanding the proportion of revenue derived from royalties versus other sources (such as franchise fees or equipment sales) is crucial for assessing the financial health and revenue model of the franchise. Requesting further clarification on royalty income trends and calculations would provide a clearer picture of potential earnings.