What was the net change in cash from financing activities for Kitchen Solvers in 2024?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Cash flows from financing activities | |||||
|---|---|---|---|---|---|
| Note payable - Officer | 2,455 | ( 16,126) | 18,049 | ||
| Proceeds from long-term debt | - | 56,700 | - | ||
| Principal payments on long-term debt | ( 18,523) | ( 13,020) | - | ||
| Member distributions | ( 304,910) | ( 204,000) | ( 409,849) | ||
| Net change in cash from financing activities | ( 320,978) | ( 176,446) | ( 391,800) |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the net change in cash from financing activities in 2024 was a decrease of $320,978. This figure reflects the overall impact of financing-related transactions on the company's cash position during that year.
Specifically, the cash flows from financing activities include several components. There was an increase of $2,455 from a note payable to an officer, indicating additional borrowing from within the company. Conversely, principal payments on long-term debt amounted to $18,523, representing cash outflows towards debt reduction. The most significant factor was member distributions, which totaled $304,910. These distributions represent payments made to the members or owners of Kitchen Solvers, reducing the company's cash reserves.
The net effect of these financing activities resulted in a substantial decrease in cash. For a prospective franchisee, this information provides insight into how Kitchen Solvers manages its finances, particularly its debt and equity. A large negative change in cash from financing activities, driven primarily by member distributions, could suggest that the company prioritizes returning profits to its owners, which might impact the availability of funds for reinvestment or growth. Franchisees may want to inquire about the company's long-term financial strategy and how it balances distributions with investments in the franchise system.