What was the amount of Kitchen Solvers' operating lease liability as of December 31, 2022?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Statements of Cash Flows | |||||
|---|---|---|---|---|---|
| Years Ended December 31, 2024, 2023, and 2022 | 2024 | 2023 | 2022 | ||
| Increase (decrease) in cash: | |||||
| Cash flows from operating activities | |||||
| Net income | $ 464,580 | $ 210,640 | $ 232,257 | ||
| Adjustments to reconcile net income to net | |||||
| cash provided by operating activities: | |||||
| Depreciation | 10,880 | 6,555 | 1,585 | ||
| Noncash lease expense | 40,121 | 10,262 | - |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the provided excerpts do not include a specific figure for the operating lease liability as of December 31, 2022. However, the document does include a table showing the statements of cash flows, which includes a line item for "Noncash lease expense".
For the year ended December 31, 2022, the noncash lease expense is listed as "-." This indicates that there was no noncash lease expense recorded for that year. It is important to note that noncash lease expense is not the same as operating lease liability. The operating lease liability would represent the total future lease payments owed, while the noncash lease expense represents the portion of the lease expense recognized during the year that did not involve a cash payment.
To determine the exact operating lease liability for Kitchen Solvers as of December 31, 2022, a prospective franchisee should consult the complete 2025 FDD or ask the franchisor directly for this information. Understanding the company's lease obligations is crucial for assessing its financial health and stability.