What was the amount of advances receivable for Kitchen Solvers in 2022?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
al statements as a whole.
Hancock & Robinson CPAs
La Crosse, Wisconsin
March 7, 2025
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 | - | - |
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, the advances receivable in 2022 was $74,472. This is shown in the balance sheet of the company's financial statements. It is important to note that this receivable relates to Kitchen Wise, LLC (KW), an entity previously under common ownership with Kitchen Solvers.
The FDD states that Kitchen Wise, LLC was sold to an independent third party on October 1, 2019. As part of the sale, a promissory note for $300,000 was signed, with monthly payments due until October 2022. Kitchen Solvers was to be reimbursed from the proceeds of this note until the advance receivable was fully repaid.
In 2023 and 2022, Kitchen Solvers received payments of $74,472 and $75,000, respectively, related to this promissory note. The presence of this advance receivable indicates a financial relationship between Kitchen Solvers and the former related party, Kitchen Wise, LLC, and its repayment schedule. A prospective franchisee should inquire about the details of this transaction and ensure it does not impact the current financial stability or future operations of Kitchen Solvers.