What method of payment is required for utility deposits and business licenses for a Kitchen Solvers franchise?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount1 | Method of Payment | When Due | To Whom Payment is to be Made | |
|---|---|---|---|---|---|
| Initial Franchise Fee1 | $60,000 | Lump sum | Upon execution of Franchise Agreement | Us | |
| Pre-Opening | $2,000 to $3,000 | As Incurred | As Incurred | Third parties for travel | |
| Training3 | and living expenses | ||||
| Supplies Package4 | $5,900 | As incurred | Upon execution of Franchise Agreement | Us | |
| Local Marketing5 | $9,000 | As Incurred | As Incurred | Third Party Suppliers | |
| Rent/Leasehold | $0 to $4,500 | As incurred | As incurred | Landlord/Third Party | |
| Improvements6 | (Showroom) | Suppliers | |||
| Office Equipment & | $0 to $4,500 | As incurred | Before opening | Third-party suppliers | |
| Computer System7 | |||||
| Vehicle8 | $0 to $2,100 | Lump sum | Before opening | Third-party suppliers | |
| Vehicle and/or Trailer | $1,000 to $2,500 | Lump Sum | Before opening | Third-party suppliers | |
| Wrap9 | |||||
| Insurance Premiums10 | $1,000 to $3,500 | As Incurred | Before opening | Insurance companies | |
| Utility Deposits and | $100 to $750 | Lump Sum | Before opening | Third-party suppliers | |
| Business Licenses11 | |||||
| Attorney’s Fees12 | $500 to $1,000 | Lump sum | As incurred | Attorney | |
| Bookkeeping Tech | $300 | As incurred | As incurred | Third-party suppliers | |
| Fees13 | |||||
| Accounting Fees14 | $750 to $1,500 | As Incurred | As incurred | Third-party suppliers | |
| Back Office | $0 to $450 | As incurred | As incurred | Third-party suppliers | |
| Expenses15 | |||||
| Installation Tools16 | $0 to $7,250 | As incurred | As incurred | Third-party suppliers | |
| Technology Fees17 | $807 | As Incurred | As Incurred | Us | |
| Type of Expenditure | Amount1 | Method of Payment | When Due | To Whom Payment is to be Made | |
| Additional Funds (3- | $20,000 to $30,000 | As incurred | As Incurred | Employees, third-party | |
| month period)18 | suppliers, etc. | ||||
| TOTAL19 | $101,857 to $136,807 | #### Notes: |
- (1) The above chart assumes that you did not qualify for any discounts, and that you paid the standard Initial Franchise Fee.
- (2) These are the estimated initial investments for beginning operations for a KITCHEN SOLVERS Business. The estimated initial investments will vary depending on factors like whether you operate your Business out of your home or lease an office and showroom, your financial condition and the arrangements and business decisions you make. Except where otherwise noted, all fees that you pay to us are nonrefundable.
Source: Item 7 — Estimated Initial Investment (FDD pages 16–21)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, utility deposits and business licenses require payment via a lump sum. The estimated cost for these combined expenses ranges from $100 to $750, payable to third-party suppliers before opening the business. It is important to note that while deposits are generally refundable, license fees are typically not. These business licenses may include specialty or general contracting fees, which can vary by state or county. Additionally, this category covers any other general business permits or fees required to establish your business entity within your state. This amount can fluctuate depending on the specific state and/or county requirements. Prospective Kitchen Solvers franchisees should budget accordingly and be aware of the non-refundable nature of license fees when planning their initial investment.
Understanding the breakdown of these costs is crucial for accurate financial planning. The FDD provides a table outlining various expenditures, their amounts, payment methods, due dates, and to whom payments are made. For utility deposits and business licenses, the 'Method of Payment' is listed as 'Lump Sum,' meaning the entire amount is due at once. This differs from other expenses like 'Local Marketing' or 'Accounting Fees,' which are paid 'As Incurred.' Knowing this distinction helps franchisees manage their cash flow and allocate funds appropriately during the initial setup phase.
Given the variability in license fees from state to state and county to county, it is advisable for prospective Kitchen Solvers franchisees to conduct thorough research on local requirements. Contacting local government offices or consulting with a business advisor can provide a more precise estimate of these costs. This proactive approach can prevent unexpected financial burdens and ensure a smoother business launch. Additionally, franchisees should confirm with third-party suppliers whether utility deposits are indeed refundable in their specific location, as this can impact their overall initial investment recovery.