What was the amount of professional fees Kidokinetics paid in 2023?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
23, 2022, and 2021
| 2023 | 2022 | 2021 | |||
|---|---|---|---|---|---|
| Operating revenue | |||||
| Initial franchise fees | $ 2,796,637 | $ | 689,548 | $ | 281,000 |
| Royalty fees | 201,199 | 86,911 | 56,577 | ||
| Service revenue | 467,961 | 87,473 | - | ||
| Advertising fees | 29,635 | - | - | ||
| Apparel sales | 13,774 | 27,823 | - | ||
| Total operating revenue | 3,509,206 | 891,755 | 337,577 | ||
| Operating expenses | |||||
| General and administrative | 1,697,537 | 989,921 | 475,718 | ||
| Professional fees | 674,880 | 81,198 | 76,154 | ||
| Commissions | 1,716,506 | 490,302 | 125,315 | ||
| Advertising and marketing | 71,433 | 116,633 | 70,163 | ||
| Total operating expenses | 4,160,356 | 1,678,054 | 747,350 | ||
| Loss from operations | (651,150) | (786,299) | (409,773) | ||
| Interest expense | 97,922 | 25,021 | 1,943 | ||
| Net loss | $ (749,072) | $ | (811,320 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the company's professional fees for the year 2023 amounted to $674,880. This figure is part of the operating expenses detailed in the financial statements. Reviewing these expenses can provide insight into the financial management and operational costs of Kidokinetics.
Professional fees typically include expenses for services such as accounting, legal, and consulting. For a prospective franchisee, understanding the franchisor's expenses can be helpful in evaluating the overall financial health and stability of the franchise system. High professional fees might indicate complex legal or financial situations, while consistently low fees could raise questions about the quality or extent of professional services utilized.
It's important to note that these fees are specific to Kidokinetics as a company and not necessarily indicative of the expenses a franchisee might incur. Franchisees will likely have their own professional fees related to accounting, legal, and other advisory services. However, understanding the franchisor's financial obligations can contribute to a more comprehensive assessment of the franchise opportunity.