What was the amount of service revenue Kidokinetics generated 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 generated $467,961 in service revenue during 2023. This figure represents the income Kidokinetics earned directly from providing services, as opposed to revenue from franchise fees, royalties, or other sources.
For a prospective franchisee, understanding the service revenue is crucial as it reflects the demand for Kidokinetics' core offerings. A higher service revenue generally indicates a stronger market presence and acceptance of the Kidokinetics program. This can be a positive sign for potential franchisees, suggesting a viable business model.
However, it's also important to consider the expenses associated with generating this revenue. While Kidokinetics generated $467,961 in service revenue, the company's overall financial statements show a net loss of $(749,072) for 2023. This suggests that the costs of operating the Kidokinetics franchise system exceeded its total revenue, including service revenue. Therefore, prospective franchisees should carefully analyze the expenses detailed in the financial statements to understand the profitability of the Kidokinetics business model.