What was the amount Kidokinetics spent on advertising and marketing in 2022?
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 advertising and marketing expenses for the fiscal year ending December 31, 2022, totaled $116,633. This figure reflects the actual costs Kidokinetics incurred for advertising and marketing activities during that year.
For a prospective franchisee, this number provides insight into the level of investment Kidokinetics makes in promoting its brand and services. It's important to consider this amount in relation to the overall revenue and expenses of the company to assess the effectiveness of their marketing efforts. A higher investment in advertising and marketing could potentially lead to greater brand awareness and customer acquisition for franchisees.
However, it's also crucial to understand how these advertising and marketing funds are allocated and whether franchisees are required to contribute to these expenses through separate marketing fees. Further investigation into Kidokinetics' marketing strategies and the specific benefits franchisees receive from these expenditures would be beneficial for any potential investor.