What were the general and administrative expenses for Kitchen Solvers for the year ended December 31, 2023?
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 company's general and administrative expenses for the year ending December 31, 2023, were $1,327,622. This figure represents the costs associated with managing the business operations, including salaries, rent, utilities, and other overhead expenses.
For a prospective Kitchen Solvers franchisee, understanding these expenses is crucial as it provides insight into the financial health and operational efficiency of the franchisor. A high level of general and administrative expenses might suggest inefficiencies or excessive spending, while a lower figure could indicate effective cost management. However, it is important to consider these expenses in relation to the total revenue to determine the overall profitability and financial stability of Kitchen Solvers.
It is also important to note that these expenses are specific to the franchisor's operations and do not directly reflect the expenses a franchisee will incur in running their own Kitchen Solvers franchise. Franchisees will have their own set of operating expenses, including costs related to marketing, labor, and supplies, which they need to manage effectively to ensure profitability. Therefore, while the franchisor's financial statements provide valuable context, prospective franchisees should focus on developing a detailed business plan and budget that accurately reflects their anticipated expenses and revenue.