What were the purchases of property and equipment for Kitchen Solvers in 2023?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Statements of Cash Flows | |||||
|---|---|---|---|---|---|
| Years Ended December 31, 2024, 2023, and 2022 | 2024 | 2023 | 2022 | ||
| Increase (decrease) in cash: | |||||
| Cash flows from operating activities | |||||
| Net income | $ 464,580 | $ 210,640 | $ 232,257 | ||
| Adjustments to reconcile net income to net | |||||
| cash provided by operating activities: | |||||
| Depreciation | 10,880 | 6,555 | 1,585 | ||
| Noncash lease expense | 40,121 | 10,262 | - | ||
| Changes in operating assets and liabilities: | |||||
| Accounts receivable | 75,001 | 1,889 | ( 47,979) | ||
| Accounts receivable - related party | ( 174,152) | - | - | ||
| Contract assets | ( 61,597) | ( 107,296) | ( 194,671) | ||
| Advances receivable | - | 74,472 | 75,000 | ||
| Other receivable | - | 3,260 | ( 3,260) | ||
| Inventory | ( 14,536) | ( 14,106) | - | ||
| Prepaid expenses | 16 | ( 2,293) | - | ||
| Accounts payable | 31,571 | ( 38,816) | 55,390 | ||
| Accrued and other liabilities | 17,806 | - | - | ||
| Deferred revenue | 12,268 | 76,042 | - | ||
| Contract liabilities | 229,411 | 171,452 | 275,741 | ||
| Lease liabilities - operating | ( 39,479) | ( 10,529) | - | ||
| Net change in cash from operating activities | 591,890 | 381,532 | 394,063 | ||
| Cash flows from investing activities: | |||||
| Purchases of property and equipment | ( 53,517) | ( 73,253) | - | ||
| Net change in cash from investing activities | ( 53,517) | ( 73,253) | - | ||
| 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) | ||
| Net change in cash | 217,395 | 131,833 | 2,263 | ||
| Cash, beginning of year | 192,541 | 60,708 | 58,445 | ||
| Cash, end of year | $ 409,936 | $ 192,541 | $ 60,708 |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the company's purchases of property and equipment in 2023 totaled $73,253. This figure reflects the capital Kitchen Solvers invested in acquiring assets like equipment and property to support its operations during that year.
For a prospective franchisee, this information provides insight into the capital expenditure patterns of Kitchen Solvers. While this figure reflects Kitchen Solvers' corporate-level spending, it doesn't directly translate to the investment a new franchisee would need to make. However, it can be useful for understanding how Kitchen Solvers manages its own resources and invests in its infrastructure.
Franchisees should focus on Item 7 of the FDD, which details the estimated initial investment for a new franchise location. Understanding Kitchen Solvers' corporate investment in property and equipment can provide a broader financial context, but the franchisee's own required investments will be detailed separately.