What was the net loss for Kidokinetics at the end of 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 for the year ending December 31, 2023. This figure is a key indicator of the company's financial performance during that period. A prospective franchisee should carefully consider this loss when evaluating the financial stability and potential risks associated with investing in a Kidokinetics franchise.
It's important to note that net loss is a comprehensive measure that reflects the overall profitability of Kidokinetics, taking into account all revenues and expenses. This loss from operations is before accounting for interest expenses, which further contributed to the net loss. The FDD also provides net loss figures for the two prior years, 2022 and 2021, which were $(811,320) and $(411,716) respectively. Reviewing these historical trends can provide further insight into the company's financial trajectory.
Understanding the reasons behind this net loss is crucial for potential franchisees. It would be prudent to ask Kidokinetics for a detailed explanation of the factors contributing to the loss, such as high operating expenses, interest expenses, or other financial challenges. Additionally, prospective franchisees should inquire about the company's strategies for improving profitability and ensuring long-term financial sustainability. Consulting with a financial advisor is recommended to assess the financial health of Kidokinetics and the potential risks and rewards of investing in the franchise.