What was the change in deferred revenue for Kitchen Solvers in 2024?
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 issuance | $ - | $ 56,700 | $ - |
| ROU asset obtained in exchange for new | |||
| operating lease liabilities | $ - | $ 43,067 | $ 92,688 |
Notes to Financial Statements
See Independent Auditor's Report
Note 1 Summary of Significant Accounting Policies
Principal Business Activity
KS La Crosse Investment, LLC (the "Company") is a franchisor of retail outlets in cabinetry. The majority of the Company's revenue results from initial sales and continuing franchise fees and rebills.
During 2023, the Company began manufacturing and selling cabinets to its franchisees. The Company's raw materials are readily available, and the Company is not dependent on a single or few suppliers.
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, deferred revenue increased by $12,268 in 2024. The deferred revenue was $88,310 as of December 31, 2024, and $76,042 as of December 31, 2023.
Deferred revenue for Kitchen Solvers consists of payments received for the yearly convention, which will take place at a future date. The revenues and expenses for this convention are deferred until the event has occurred and the revenue has been earned.
For a prospective Kitchen Solvers franchisee, this indicates that the company collects payments in advance for events like conventions. The increase in deferred revenue from 2023 to 2024 suggests that more franchisees or participants paid for the upcoming convention in 2024 compared to the previous year. This could be a positive sign, reflecting increased engagement or attendance expectations for Kitchen Solvers' events.