What was the deferred revenue for Kitchen Solvers' yearly convention as of December 31, 2024?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
on long-term notes payable at December 31, 2024, including current maturities, are summarized as follows:
| Total | $ 25,157 |
|---|---|
| 2026 | 5,217 |
| 2025 | 19,940 |
Note 7 Deferred Revenue
Deferred revenue consists of payments received for the yearly convention to take place at a future date. Revenues and expenses for this convention are defe
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the deferred revenue related to payments received for the yearly convention, which is scheduled to take place at a future date, was $88,310 as of December 31, 2024. This revenue, along with the associated expenses, is deferred until the convention occurs and the revenue is considered earned.
This means that Kitchen Solvers received payments in advance for the convention but hadn't yet held the event by the end of 2024. The franchisor will recognize this $88,310 as revenue on their income statement only after the convention has taken place. This accounting practice ensures that revenue is matched with the related expenses in the appropriate period.
For a prospective Kitchen Solvers franchisee, this deferred revenue indicates that franchisees are paying in advance to attend the yearly convention. It also suggests that the convention is a significant event for the franchise system, generating a notable amount of advanced payments. The deferred revenue was $76,042 for the year ended December 31, 2023, and $0 for the year ended December 31, 2022.