What was the net loss for Kidokinetics 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 experienced a net loss of $(749,072) in 2023. This figure represents the overall financial loss Kidokinetics sustained after accounting for all revenues and expenses during that fiscal year. For a prospective franchisee, this indicates that the company's operations resulted in a significant deficit, which could raise concerns about the financial stability and performance of the franchise system.
It is important to note that net loss is a key indicator of a company's financial health. A sustained net loss can impact Kidokinetics's ability to support its franchisees, invest in system improvements, and maintain brand standards. While a single year's loss does not necessarily indicate long-term problems, it warrants careful consideration and further investigation.
A potential franchisee should consider this net loss in the context of Kidokinetics's overall financial performance, including its revenues, expenses, and cash flow. It would be prudent to inquire about the reasons for the loss and the steps Kidokinetics is taking to improve its financial position. Additionally, comparing Kidokinetics's financial performance to that of other franchises in the children's fitness industry can provide valuable insights.