When is the revenue from the Kitchen Solvers Supplies Package recognized?

According to Kitchen Solvers' 2025 Franchise Disclosure Document, revenue from the Supplies Package is recognized when the supplies package has been provided to the franchisee. Each new Kitchen Solvers franchisee is required to purchase a supplies package from Kitchen Solvers. The fulfillment of the performance obligation occurs when Kitchen Solvers provides the items specified in the contract as the supplies package to the new franchisee.

This means that Kitchen Solvers recognizes the revenue from the supplies package at a single point in time, rather than over a period. This is a common practice when the obligation is fulfilled by delivering goods rather than providing ongoing services.

For a prospective Kitchen Solvers franchisee, this implies that the cost of the supplies package will be an upfront investment, and Kitchen Solvers will recognize this revenue immediately upon delivering the package. This accounting practice provides clarity and immediate recognition of revenue for Kitchen Solvers once the supplies are in the franchisee's possession.