What was the total value of Hyper Kidz's other 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the total value of other current assets as of the provided date is $242,305.98. This figure represents the sum of several individual accounts, including prepaid royalties, amounts due to/from various Hyper Kidz locations (Ashburn, Bolingbrook, Columbia, Bowie, Owings Mill, and Alexandria). These 'due to/from' entries likely reflect inter-company transactions or allocations of expenses between the franchisor and its affiliated locations.
The largest component of this total is the $243,052.17 due to/from the Hyper Kidz - HK Columbia location. The negative balance of -$746.19 due to/from the Hyper Kidz - HK Bolingbrook location reduces the overall total of other current assets. The other locations listed have a balance of $0.00.
For a prospective franchisee, understanding the composition of these 'other current assets' is crucial. It provides insight into the financial relationships between Hyper Kidz and its affiliates, as well as the types of transactions that occur between them. While the amounts due to/from affiliates may not directly impact a franchisee's operations, they offer a glimpse into the overall financial management and interconnectedness of the Hyper Kidz system. A potential franchisee might want to inquire about the nature of these inter-company transactions and how they could potentially affect their own franchise.