For Kitchen Solvers, what was the net value of contract liabilities less contract assets in 2024?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
ined, therefore these costs are recognized as contract assets over the life of the contract, which is 10 years. The contract assets and liabilities are included on the accompanying balance sheets as follows:
| 2024 | 2023 | 2022 | |||||
|---|---|---|---|---|---|---|---|
| Contract assets - Current | $ | (138,404) | $ | (118,404) | $ | (98,129) | |
| Contract assets - Noncurrent | (787,811) | (746,214) | (659,193) | ||||
| Contract liabilities - Current | 257 |
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the net value of contract liabilities less contract assets for 2024 was $750,333. This figure represents the difference between the total contract liabilities (both current and non-current) and the total contract assets (both current and non-current) held by Kitchen Solvers at the end of the 2024 fiscal year. This metric provides a snapshot of Kitchen Solvers' financial obligations related to contracts versus the assets they expect to realize from those contracts.
For a prospective Kitchen Solvers franchisee, this number offers insight into the company's financial health and its ability to manage its contractual obligations. A higher positive number suggests that Kitchen Solvers has a greater amount of deferred revenue or obligations to fulfill compared to the assets it can readily convert to cash from existing contracts. This could be due to advance payments received for services or products yet to be delivered.
It's important to note that this is just one financial metric, and a comprehensive understanding requires analyzing other financial statements and disclosures within the FDD. Franchisees should consider this figure in conjunction with other liabilities, assets, and revenue streams to assess the overall financial stability and performance of Kitchen Solvers. Consulting with a financial advisor is recommended to fully interpret the implications of this and other financial data presented in the FDD.