On what basis of accounting are Kitchen Solvers' financial statements prepared?

According to Kitchen Solvers' 2025 Franchise Disclosure Document, the company's financial statements are prepared using the accrual basis of accounting. This means that revenues are recognized when earned and expenses are recognized when incurred, regardless of when cash changes hands. This method provides a more accurate picture of the company's financial performance over a period of time, as it matches revenues with the expenses incurred to generate those revenues.

Kitchen Solvers also adheres to accounting principles generally accepted in the United States of America (GAAP). GAAP provides a common set of rules and standards for financial reporting, ensuring consistency and comparability across different companies' financial statements. This allows potential franchisees and other stakeholders to have confidence in the reliability and accuracy of the financial information presented.

For a prospective Kitchen Solvers franchisee, this information indicates that the financial statements included in the FDD are prepared according to standard accounting practices. This is important for making informed decisions about investing in the franchise, as it allows for a clear understanding of the franchisor's financial health and performance. Franchisees can review these statements with their own financial advisors to assess the financial stability and profitability of Kitchen Solvers.