What was the total amount of commissions Kidokinetics paid 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' 2024 Franchise Disclosure Document, the company paid $125,315 in commissions during the year 2021. This figure is part of the operating expenses reported in the company's financial statements.
For a prospective franchisee, understanding the franchisor's commission expenses can provide insight into their sales and marketing strategies. It reflects the costs Kidokinetics incurs to incentivize sales, potentially through brokers or internal sales teams. This information, when compared to revenue figures, can help assess the efficiency of Kidokinetics' sales efforts.
It's important to note that commission expenses can fluctuate depending on Kidokinetics' growth stage, marketing initiatives, and reliance on commissioned sales agents. A prospective franchisee might want to inquire about the specific activities driving these commission expenses and how they correlate with franchisee support and sales performance.