As of December 31, 2024, what impairment losses on long-lived assets has Kitchen Solvers incurred?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
GAAP requires that long-lived assets be reviewed for impairment when events or circumstances indicate the carrying value of an asset may not be recoverable. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable. When required, impairment losses on assets to be held and used are recognized based on fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value, less estimated cost to sell. As of December 31, 2024, there have been no such losses incurred by the Company.
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, as of December 31, 2024, the company had not incurred any impairment losses on long-lived assets. This means that Kitchen Solvers did not have to write down the value of any of its assets due to a decline in their fair value below their carrying amount.
For a prospective franchisee, this indicates that Kitchen Solvers has been managing its assets effectively and has not experienced any significant losses that would require it to reduce the value of its assets. This can be seen as a positive sign, as it suggests that the company is financially stable and has a good track record of asset management.
It's important to note that this is just a snapshot in time, and the company's financial situation could change in the future. However, the fact that Kitchen Solvers had not incurred any impairment losses on long-lived assets as of December 31, 2024, is a good sign for prospective franchisees.