What was the accumulated depreciation for Kitchen Solvers as of December 31, 2022?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Balance Sheets | ||||||
|---|---|---|---|---|---|---|
| December 31, 2024, 2023, and 2022 | ||||||
| Assets | 2024 | 2023 | 2022 | |||
| Current assets: | ||||||
| Cash | $ 409,936 | $ 192,541 | $ 60,708 | |||
| Accounts receivable | 63,672 | 138,673 | 140,562 | |||
| Accounts receivable - related party | 174,152 | - | - | |||
| Contract assets - Current | 138,404 | 118,404 | 98,129 | |||
| Advances receivable | - | - | 74,472 | |||
| Other receivable | - | - | 3,260 | |||
| Inventory | 28,642 | 14,106 | - | |||
| Prepaid expenses | 2,277 | 2,293 | - | |||
| Total current assets | 817,083 | 466,017 | 377,131 | |||
| Property and equipment: | ||||||
| Equipment and fixtures | 34,201 | 34,201 | 34,201 | |||
| Technology equipment and software | 109,640 | 109,640 | 109,640 | |||
| Machinery and equipment | 86,429 | 73,253 | - | |||
| Vehicles | 6,500 | - | - | |||
| Leasehold improvements | 33,841 | - | - | |||
| Totals | 270,611 | 217,094 | 143,841 | |||
| Less - Accumulated depreciation | ( 156,768) | ( 145,888) | ( 139,333) | |||
| Net property and equipment | 113,843 | 71,206 | 4,508 | |||
| Other assets: | ||||||
| Territory held for sale | 12,798 | 12,798 | 12,798 | |||
| Contract assets | 787,811 | 746,214 | 659,193 | |||
| Right of use asset - Operating leases | 13,203 | 53,324 | 63,586 | |||
| Goodwill | 366,651 | 366,651 | 366,651 | |||
| Total other assets | 1,180,463 | 1,178,987 | 1,102,228 | |||
| TOTAL ASSETS | Liabilities and Members' Equity | $ 2,111,389 | $ 1,716,210 | $ 1,483,867 |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the accumulated depreciation as of December 31, 2022, was $(139,333). This figure represents the total depreciation of Kitchen Solvers' assets, such as equipment, technology, and machinery, that has been recognized up to that date. Accumulated depreciation is a contra-asset account, meaning it reduces the book value of the company's assets.
For a prospective Kitchen Solvers franchisee, understanding accumulated depreciation is important for assessing the net value of the franchisor's assets. It provides insight into how the company manages its resources and invests in maintaining or upgrading its equipment and technology. A high accumulated depreciation relative to the original cost of the assets might indicate that the assets are aging and may need replacement soon, which could impact the franchisor's future capital expenditures.
It is also useful to compare the accumulated depreciation across different years to understand the trend. In this case, the accumulated depreciation was $(145,888) in 2023 and $(156,768) in 2024, showing an increase over time. This is a normal expectation as assets continue to age and depreciate. Monitoring these figures can help a franchisee evaluate the financial health and investment strategies of Kitchen Solvers.
Franchisees should consider this information in conjunction with other financial statement data to get a comprehensive view of Kitchen Solvers' financial position. While accumulated depreciation itself doesn't directly impact day-to-day operations, it reflects the company's long-term asset management and capital investment decisions, which can indirectly affect the support and resources available to franchisees.