What was the deferred revenue for Kitchen Solvers in 2024?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the deferred revenue for the year ending December 31, 2024, was $12,268. This figure is part of the company's Statements of Cash Flows, specifically under the changes in operating assets and liabilities section. Deferred revenue represents payments Kitchen Solvers has received for goods or services that have not yet been earned.
For a potential Kitchen Solvers franchisee, understanding deferred revenue is crucial as it reflects the company's financial stability and how it manages its obligations to customers. An increase in deferred revenue could indicate growing sales and customer confidence, while a decrease might suggest challenges in fulfilling existing contracts or a slowdown in new business.
It is important to note that deferred revenue is just one aspect of Kitchen Solvers' financial health. Prospective franchisees should review the entire Statements of Cash Flows, along with other financial statements and disclosures in the FDD, to gain a comprehensive understanding of the company's financial performance and stability. Consulting with a financial advisor is also recommended to assess the financial implications of investing in a Kitchen Solvers franchise.