What was the total amount of advertising and marketing expenses 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's advertising and marketing expenses for the year 2023 totaled $71,433. This figure reflects the costs Kidokinetics incurred for advertising and marketing activities during that fiscal year. Franchisees should consider this amount in relation to the overall revenue and expenses of the company to understand the scale of marketing efforts.
Understanding the franchisor's advertising and marketing expenses can provide insight into their commitment to brand promotion and support for franchisees. While $71,433 was spent in 2023, it is important to note that $116,633 was spent in 2022, and $70,163 was spent in 2021. A prospective franchisee should inquire about Kidokinetics's marketing strategies, how these funds are allocated, and the impact of marketing on franchise performance.
It's also important to assess whether these expenses are sufficient to maintain and grow the brand's presence in a competitive market. Furthermore, franchisees should determine if they are required to contribute to a marketing fund and how those contributions are managed and utilized. Examining the trend in advertising and marketing expenses over several years can help potential franchisees evaluate the franchisor's ongoing investment in brand development and franchisee support.