What was the amount of proceeds from long-term debt for Kitchen Solvers in 2023?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
1 | 0 | | TN | 0 | 1 | 0 | | MN | 0 | 1 | 0 | | TOTAL | 0 | 3 | 0 |
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 | - |
| Changes in operating assets and liabilities: | |||
| Accounts receivable | 75,001 | 1,889 | (47,979) |
| Accounts receivable - related party | (174,152) | - | - |
| Contract assets | (61,597) | (107,296) | (194,671) |
| Advances receivable | - | 74,472 | 75,000 |
| Other receivable | - | 3,260 | (3,260) |
| Inventory | (14,536) | (14,106) | - |
| Prepaid expenses | 16 | (2,293) | - |
| Accounts payable | 31,571 | (38,816) | 55,390 |
| Accrued and other liabilities | 17,806 | - | - |
| Deferred revenue | 12,268 | 76,042 | - |
| Contract liabilities | 229,411 | 171,452 | 275,741 |
| Lease liabilities - operating | (39,479) | (10,529) | - |
| Net change in cash from operating activities | 591,890 | 381,532 | 394,063 |
| Cash flows from investing activities: | |||
| Purchases of property and equipment | (53,517) | (73,253) | - |
| Net change in cash from investing activities | (53,517) | (73,253) | - |
| Cash flows from financing activities | |||
| Note payable - Officer | 2,455 | (16,126) | 18,049 |
| Proceeds from long-term debt | - | 56,700 | - |
| Principal payments on long-term debt | (18,523) | (13,020) | - |
| Member distributions | (304,910) | (204,000) | (409,849) |
| Net change in cash from financing activities | (320,978) | (176,446) | (391,800) |
| Net change in cash | 217,395 | 131,833 | 2,263 |
| Cash, beginning of year | 192,541 | 60,708 | 58,445 |
| Cash, end of year | $ 409,936 | $ 192,541 | $ 60,708 |
| Supplemental cash flow information: | |||
| Cash paid during the year for: | |||
| Interest | $ 2,602 | $ 3,236 | $ - |
| Operating cash flows from operating lease liabilities | $ 41,121 | $ 40,651 | $ 33,613 |
| Noncash reconciling items: | |||
| Equipment acquired with debt issuan |
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the proceeds from long-term debt in 2023 were $56,700. This figure reflects the cash inflow Kitchen Solvers received from new long-term loans during that year.
For a prospective franchisee, understanding the franchisor's debt activity can provide insights into their financial strategy and stability. Proceeds from long-term debt might be used for various purposes, such as investments in technology, infrastructure, or acquisitions. It is important to note that while taking on debt can fuel growth, it also creates repayment obligations that could impact Kitchen Solvers' financial flexibility.
Franchisees should consider this information in conjunction with other financial metrics, such as revenue, expenses, and overall profitability, to assess the financial health of Kitchen Solvers. Additionally, it would be prudent to inquire with Kitchen Solvers about the specific purposes for which these debt proceeds were used and the terms of the long-term debt agreements to fully understand the implications for the franchise system.