How does Kitchen Solvers recognize costs for sick pay and personal time?

According to Kitchen Solvers' 2025 Franchise Disclosure Document, the company does not accrue compensated absences for sick pay and personal time because they cannot be reasonably estimated. Instead, Kitchen Solvers recognizes these costs when they are actually paid out.

For a prospective franchisee, this means that Kitchen Solvers' financial statements may not reflect a liability for potential future payouts of sick pay or personal time. This accounting practice could potentially understate the company's liabilities if there is a significant amount of accrued but unpaid time off.

This approach is generally conservative, as it avoids recognizing expenses before they are certain. However, it also means that the financial statements may not provide a complete picture of Kitchen Solvers' potential obligations related to employee time off. A potential franchisee may want to inquire about the typical amount of sick and personal time taken by employees to better understand the potential financial impact.