What was the total amount of Kitchen Solvers' accounts receivable - related party in 2024?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Balance Sheets | ||||||
|---|---|---|---|---|---|---|
| December 31, 2024, 2023, and 2022 | ||||||
| Assets | 2024 | 2023 | 2022 | |||
| Current assets: | ||||||
| Cash | $ 409,936 | $ 192,541 | $ 60,708 | |||
| Accounts receivable | 63,672 | 138,673 | 140,562 | |||
| Accounts receivable - related party | 174,152 | - | - |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the total amount for accounts receivable from related parties in 2024 was $174,152. This figure represents the money owed to Kitchen Solvers by individuals or entities that have a specific relationship with the company, such as subsidiaries, affiliates, or key personnel.
For a prospective franchisee, understanding the nature and magnitude of these related-party transactions is crucial. It provides insight into the financial relationships Kitchen Solvers has with its related entities and how these relationships might affect the overall financial health of the company. High accounts receivable from related parties could indicate potential risks if these parties are unable to meet their obligations.
It is important for potential franchisees to investigate the details behind these transactions. Understanding the terms of repayment, the creditworthiness of the related parties, and the reasons for these transactions can provide a clearer picture of the financial stability and practices of Kitchen Solvers. This information is essential for making an informed investment decision and assessing the potential risks and rewards of joining the Kitchen Solvers franchise system.