What was the cost of goods sold for Kitchen Solvers for the year ended December 31, 2024?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | - | - | 3,260 | |||
| Inventory | 28,642 | 14,106 | - | |||
| Prepaid expenses | 2,277 | 2,293 | - | |||
| Total current assets | 817,083 | 466,017 | 377,131 | |||
| Property and equipment: | ||||||
| Equipment and fixtures | 34,201 | 34,201 | 34,201 | |||
| Technology equipment and software | 109,640 | 109,640 | 109,640 | |||
| Machinery and equipment | 86,429 | 73,253 | - | |||
| Vehicles | 6,500 | - | - | |||
| Leasehold improvements | 33,841 | - | - | |||
| Totals | 270,611 | 217,094 | 143,841 | |||
| Less - Accumulated depreciation | ( 156,768) | ( 145,888) | ( 139,333) | |||
| Net property and equipment | 113,843 | 71,206 | 4,508 | |||
| Other assets: | ||||||
| Territory held for sale | 12,798 | 12,798 | 12,798 | |||
| Contract assets | 787,811 | 746,214 | 659,193 | |||
| Right of use asset - Operating leases | 13,203 | 53,324 | 63,586 | |||
| Goodwill | 366,651 | 366,651 | 366,651 | |||
| Total other assets | 1,180,463 | 1,178,987 | 1,102,228 | |||
| TOTAL ASSETS | Liabilities and Members' Equity | $ 2,111,389 | $ 1,716,210 | $ 1,483,867 | ||
| Current liabilities: | ||||||
| Accounts payable | $ 53,515 | $ 21,944 | $ 60,760 | |||
| Accrued and other liabilities | 25,258 | 7,452 | 7,452 | |||
| Note payable - Shareholder | 4,378 | 1,923 | 18,049 | |||
| Current portion of long-term note payable | 19,940 | 18,523 | - | |||
| Deferred revenue | 88,310 | 76,042 | - | |||
| Contract liabilities - Current | 257,082 | 210,682 | 193,047 | |||
| Operating lease liability - Current | 13,578 | 39,479 | 30,861 | |||
| Total current liabilities | 462,061 | 376,045 | 310,169 | |||
| Long-term liabilities: | ||||||
| Contract liabilities | 1,419,466 | 1,236,455 | 1,082,638 | |||
| Long-term note payable - Less current maturities | 5,217 | 25,157 | - | |||
| Operating lease liability | - | 13,578 | 32,725 | |||
| Total long-term liabilities | 1,424,683 | 1,275,190 | 1,115,363 | |||
| Total liabilities | 1,886,744 | 1,651,235 | 1,425,532 | |||
| Members' equity | 224,645 | 64,975 | 58,335 | |||
| TOTAL LIABILITIES AND MEMBERS' EQUITY | $ 2,111,389 | $ 1,716,210 | $ 1,483,867 | |||
| Statements of Income and Members’ Equity | ||||||
| Years Ended December 31, 2024, 2023, and 2022 | 2024 | 2023 | 2022 | |||
| Franchise sales | $ 304,040 | $ 313,541 | $ 270,770 | |||
| Other franchise fees and rebills | 1,480,288 | 1,216,838 | 1,319,541 | |||
| Manufacturing sales | 439,679 | 79,392 | - | |||
| Total revenue | 2,224,007 | 1,609,771 | 1,590,311 | |||
| General and administrative expenses | 1,461,463 | 1,327,622 | 1,362,454 | |||
| Cost of goods sold | 305,080 | 73,145 | - | |||
| Income from operations | 457,464 | 209,004 | 227,857 | |||
| Other income (expense): | ||||||
| Interest expense | ( 2,602) | ( 3,236) | - | |||
| Other income | 9,718 | 4,872 | 4,400 | |||
| Total other income (expense) | 7,116 | 1,636 | 4,400 | |||
| Net income | 464, |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the cost of goods sold for the year ended December 31, 2024, was $305,080. This figure represents the direct costs attributable to the production and sale of goods by Kitchen Solvers during that fiscal year.
For a prospective franchisee, understanding the cost of goods sold is crucial because it directly impacts the profitability of the franchise. A higher cost of goods sold can reduce the profit margin, while a lower cost of goods sold can increase it. Monitoring this figure over time helps in assessing the efficiency of the supply chain and production processes.
It's also important to note the trend in the cost of goods sold. In 2023, the cost of goods sold was $73,145. The significant increase to $305,080 in 2024 suggests a substantial change in sales volume, production costs, or the mix of products sold. A potential franchisee should investigate the reasons behind this increase to better understand the financial dynamics of Kitchen Solvers.
Reviewing the cost of goods sold in relation to total revenue provides further insight. For 2024, total revenue was $2,224,007. Comparing this to the cost of goods sold allows for the calculation of the gross profit margin, a key indicator of financial health. A franchisee should analyze these figures to project potential earnings and assess the financial stability of the Kitchen Solvers franchise.