What was the reported value of Kitchen Solvers' noncurrent contract assets in 2022?
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 value of noncurrent contract assets in 2022 was reported as $659,193. This figure represents the long-term portion of contract assets that Kitchen Solvers expects to realize over a period greater than one year.
For a prospective Kitchen Solvers franchisee, understanding the nature and value of these contract assets is crucial. Contract assets typically arise when Kitchen Solvers has performed its obligations under a contract but has not yet received payment. The noncurrent portion indicates revenue that Kitchen Solvers anticipates recognizing in the future based on existing contractual agreements.
It's important to note that these assets are subject to potential risks, such as customer default or changes in contractual terms. Franchisees should inquire about the specific types of contracts that generate these assets and the historical collection rates associated with them. This information can provide insights into the stability and predictability of Kitchen Solvers' long-term revenue streams.