For Kitchen Solvers, how is 'Gross Revenue Less Disclosed Expenses' calculated in Table 1?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
3,139,039 | $184,528 | $873,586 | 43% |
General Notes and Defined Terms for Tables 1 through 3:
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- "Gross Revenue" means the total reported revenues and receipts from the sale of all products and services sold through each Item 19 Outlet. Gross Revenue does not include sales tax.
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- "Range" provides the lowest and highest outcome experienced for each category.
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- "Job" means a customer contract for one job.
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- "Materials Expenses" means the cost of all direct materials purchased by the Item 19 Outlet to complete all customer projects during the Measurement Period.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–44)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, 'Gross Revenue Less Disclosed Expenses' in Table 1 is calculated by subtracting 'Materials Expenses' and 'Installation Expenses' from 'Gross Sales'.
'Gross Revenue' is defined as the total revenue from all products and services sold through each Item 19 Outlet, excluding sales tax. 'Materials Expenses' refers to the cost of all direct materials purchased to complete customer projects. 'Installation Expenses' includes all expenses on subcontracted and employed labor needed to fulfill customer contracts.
This calculation provides a view of revenue after deducting the direct costs of materials and installation, which can be useful for understanding the profitability of Kitchen Solvers franchises. However, it's important to note that this figure does not account for other operating expenses such as royalty fees or marketing expenses, which would further impact net income or profit.