What was the total operating revenue 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) | $ | (411,716) |
STATEMENTS OF MEMBERS'
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the total operating revenue for the company in 2023 was $3,509,206. This revenue is comprised of several sources, including initial franchise fees, royalty fees, service revenue, advertising fees, and apparel sales. Understanding the different revenue streams and their relative contributions can give potential franchisees insight into how Kidokinetics generates income.
Specifically, initial franchise fees accounted for $2,796,637 of the total operating revenue in 2023. Royalty fees contributed $201,199, while service revenue added $467,961. Advertising fees and apparel sales made smaller contributions, with $29,635 and $13,774 respectively. These figures provide a detailed breakdown of how Kidokinetics's revenue is generated, which is crucial for prospective franchisees to evaluate the financial health and stability of the franchise system.
It's important to note that while Kidokinetics's total operating revenue was $3,509,206 in 2023, the company still experienced a net loss of $(749,072) for the same year. This indicates that operating expenses and other financial obligations exceeded the revenue generated. A prospective franchisee should carefully examine the operating expenses and other factors contributing to the net loss to assess the financial risks and potential for profitability.