What is the fiscal year end for Kidokinetics?

According to the 2024 Kidokinetics Franchise Disclosure Document, the company's fiscal year ends on December 31. This is explicitly stated in Item 21, which includes the audited financial statements for the fiscal years ending December 31, 2023, 2022, and 2021.

For a prospective franchisee, understanding the franchisor's fiscal year-end is important for several reasons. It provides a benchmark for evaluating the financial statements presented in the FDD, allowing them to assess the company's financial performance over consistent annual periods. The financial statements include the balance sheets, statements of operations, statements of members' equity (deficit), and statements of cash flows for the years ending on December 31.

Knowing the fiscal year-end also helps franchisees align their own financial planning and reporting with that of Kidokinetics. This alignment can be useful for budgeting, forecasting, and understanding the timing of financial obligations or opportunities related to the franchise agreement. The FDD includes financial statements audited by an independent auditor, providing an additional level of assurance regarding the accuracy and reliability of the financial information presented.

In the franchise industry, a December 31 fiscal year-end is a common practice, as it aligns with the calendar year. This makes it easier for franchisees and franchisors to compare financial performance against industry benchmarks and to comply with tax reporting requirements. The Kidokinetics FDD includes audited financial statements for the past three fiscal years, offering potential franchisees a view into the company's financial history and stability.