What was the amount Kidokinetics spent on professional fees 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's 2024 Franchise Disclosure Document, the company's professional fees for the year 2023 totaled $674,880. This figure is part of the operating expenses reported 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 valuable in assessing the financial health and stability of the franchise system. High professional fees might indicate complex legal or financial situations, while consistently managed expenses could reflect efficient operations.
It's important to note that these expenses are specific to the franchisor, Kidokinetics Franchise LLC, and not the franchisee's potential costs. Franchisees will also incur their own professional fees for services needed to operate their individual businesses. However, examining the franchisor's financial statements offers a broader context for evaluating the overall financial performance of the Kidokinetics franchise system.