What was the loss from operations for Kidokinetics in 2021?
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 loss from operations in 2021 was $409,773. This figure represents the difference between the total operating revenue and the total operating expenses for that year.
Specifically, in 2021, Kidokinetics had total operating revenue of $337,577 and total operating expenses of $747,350. The operating revenue includes initial franchise fees of $281,000 and royalty fees of $56,577. The operating expenses include general and administrative costs of $475,718, professional fees of $76,154, and commissions of $125,315.
For a prospective franchisee, this indicates that the Kidokinetics franchisor was not operating at a profit during 2021. It is important to consider this loss in the context of the company's overall financial health and trends over multiple years. Reviewing subsequent years, such as 2022 and 2023, can provide a more comprehensive understanding of the franchisor's financial performance and stability. A potential franchisee should investigate the reasons for the operating losses and the franchisor's plans to improve profitability.