factual

Does the Item 19 financial information for Kitchen Solvers reflect all operating expenses?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

  • C. The information presented in this Item 19 does not reflect all of the operating expenses or other costs or expenses that must be deducted from the average total sales price or gross revenue to obtain net income or profit. For example, royalty fees and marketing expenses are not included. You should conduct an independent investigation of the costs and expenses you will incur in operating your Business. Franchisees or former franchisees listed in Exhibit D to this Disclosure Document may be one source of this information.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–44)

What This Means (2025 FDD)

According to Kitchen Solvers' 2025 Franchise Disclosure Document, the Item 19 financial information provided does not reflect all operating expenses. The document specifically states that the information presented does not include all costs that must be deducted to obtain net income or profit. Royalty fees and marketing expenses, for example, are not included in the disclosed expenses. This means that the figures provided for gross revenue less disclosed expenses only account for materials and installation expenses, offering a limited view of a franchisee's potential profitability.

Prospective Kitchen Solvers franchisees should be aware that the financial performance representations in Item 19 provide an incomplete picture of potential earnings. The figures presented are gross revenue figures with only materials and installation expenses deducted. To determine potential profitability, a franchisee must conduct an independent investigation of all costs and expenses associated with operating a Kitchen Solvers franchise. This includes, but is not limited to, royalty fees, marketing expenses, rent, utilities, salaries, and other overhead costs.

Kitchen Solvers encourages prospective franchisees to develop their own business plan, including capital budgets, financial statements, and projections, and to consult with accounting, business, and legal advisors. Franchisees and former franchisees listed in Exhibit D of the FDD may also be a source of information regarding costs and expenses. By thoroughly researching all potential expenses, prospective franchisees can develop a more realistic understanding of the potential financial performance of a Kitchen Solvers franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.