What was the total operating revenue for Kidokinetics in 2022?
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 total operating revenue for the company in 2022 was $891,755. This figure represents the sum of several revenue streams, including initial franchise fees, royalty fees, service revenue, advertising fees, and apparel sales. Understanding the composition of this revenue is important for prospective franchisees as it provides insight into the different ways Kidokinetics generates income.
Specifically, in 2022, Kidokinetics generated $689,548 from initial franchise fees, $86,911 from royalty fees, $87,473 from service revenue, and $27,823 from apparel sales. There was no revenue from advertising fees in 2022. These figures show the relative importance of initial franchise fees compared to ongoing royalties and other sources of revenue for Kidokinetics. This breakdown can help potential franchisees assess the long-term sustainability and growth potential of the franchise model.
It's also important to note that while Kidokinetics had a total operating revenue of $891,755 in 2022, the company also incurred total operating expenses of $1,678,054, resulting in a loss from operations of $786,299. This indicates that, at least for 2022, Kidokinetics' expenses exceeded its revenue. Prospective franchisees should carefully consider these financial results and evaluate the factors contributing to the operating loss, such as general and administrative expenses, professional fees, and commissions, to understand the financial health and stability of the Kidokinetics franchise system.