Are Kitchen Solvers royalty fees included in the Item 19 financial information?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. The information presented in this Item 19 does not reflect all of the operating expenses or other costs or expenses that must be deducted from the average total sales price or gross revenue to obtain net income or profit. For example, royalty fees and marketing expenses are not included. You should conduct an independent investigation of the costs and expenses you will incur in operating your Business. Franchisees or former franchisees listed in Exhibit D to this Disclosure Document may be one source of this information.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–44)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, the financial performance information presented in Item 19 does not include royalty fees. Specifically, the document states that the information provided does not reflect all operating expenses that must be deducted to obtain net income or profit, and it explicitly mentions that royalty fees are not included.
This means that the gross revenue figures presented in Tables 1, 2, and 3 are before the deduction of royalty fees. A prospective Kitchen Solvers franchisee needs to account for these fees, as well as other operating expenses, to determine their potential net income or profit. The FDD advises that franchisees should conduct their own independent investigation of costs and expenses, and consult with accounting, business, and legal advisors to prepare a business plan.
The document also clarifies that the financial performance representations are based on surveys from a subset of Kitchen Solvers franchisees. For the 2024 calendar year, 23 franchise owners representing 31 of the 59 franchised outlets responded to the Item 19 survey. This means that the data is not based on the performance of all franchisees, and individual results may vary. The FDD emphasizes that there is no assurance that a new franchisee will earn as much as the amounts represented.