factual

What was the total amount of Kitchen Solvers' contract liabilities as of December 31, 2024?

Kitchen_Solvers Franchise · 2025 FDD

Answer 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 - -
Contract assets - Current 138,404 118,404 98,129
Advances receivable - - 74,472
Other receivable - - 3,260
Inventory 28,642 14,106 -
Prepaid expenses 2,277 2,293 -
Total current assets 817,083 466,017 377,131
Property and equipment:
Equipment and fixtures 34,201 34,201 34,201
Technology equipment and software 109,640 109,640 109,640
Machinery and equipment 86,429 73,253 -
Vehicles 6,500 - -
Leasehold improvements 33,841 - -
Totals 270,611 217,094 143,841
Less - Accumulated depreciation ( 156,768) ( 145,888) ( 139,333)
Net property and equipment 113,843 71,206 4,508
Other assets:
Territory held for sale 12,798 12,798 12,798
Contract assets 787,811 746,214 659,193
Right of use asset - Operating leases 13,203 53,324 63,586
Goodwill 366,651 366,651 366,651
Total other assets 1,180,463 1,178,987 1,102,228
TOTAL ASSETS Liabilities and Members' Equity $ 2,111,389 $ 1,716,210 $ 1,483,867
Current liabilities:
Accounts payable $ 53,515 $ 21,944 $ 60,760
Accrued and other liabilities 25,258 7,452 7,452
Note payable - Shareholder 4,378 1,923 18,049
Current portion of long-term note payable 19,940 18,523 -
Deferred revenue 88,310 76,042 -
Contract liabilities - Current 257,082 210,682 193,047
Operating lease liability - Current 13,578 39,479 30,861
Total current liabilities 462,061 376,045 310,169
Long-term liabilities:
Contract liabilities 1,419,466 1,236,455 1,082,638
Long-term note payable - Less current maturities 5,217 25,157 -
Operating lease liability - 13,578 32,725
Total long-term liabilities 1,424,683 1,275,190 1,115,363
Total liabilities 1,886,744 1,651,235 1,425,532
Members' equity 224,645 64,975 58,335
TOTAL LIABILITIES AND MEMBERS' EQUITY $ 2,111,389 $ 1,716,210 $ 1,483,867
Statements of Income and Members’ Equity
Years Ended December 31, 2024, 2023, and 2022 2024 2023 2022
Franchise sales $ 304,040 $ 313,541 $ 270,770
Other franchise fees and rebills 1,480,288 1,216,838 1,319,541
Manufacturing sales 439,679 79,392 -
Total revenue 2,224,007 1,609,771 1,590,311
General and administrative expenses 1,461,463 1,327,622 1,362,454
Cost of goods sold 305,080 73,145 -
Income from operations 457,464 209,004 227,857
Other income (expense):
Interest expense ( 2,602) ( 3,236) -
Other income 9,718 4,872 4,400
Total other income (expense) 7,116 1,636 4,400
Net income 464,580 210,640 232,257
Members' equity, beginning of year 64,975 58,335 235,927
Members' distributions ( 304,910) ( 204,000) (409,849)
Members' equity, end of year $ 224,645 $ 64,975 $ 58,335

Source: Item 23 — Receipts (FDD pages 49–190)

What This Means (2025 FDD)

According to Kitchen Solvers' 2025 Franchise Disclosure Document, the company's total contract liabilities as of December 31, 2024, amounted to $1,676,548. This figure is derived from two components: current contract liabilities of $257,082 and long-term contract liabilities of $1,419,466.

For a prospective Kitchen Solvers franchisee, understanding the franchisor's contract liabilities is crucial. These liabilities represent Kitchen Solvers' obligations to deliver goods or services in the future, stemming from advance payments or deposits received. Monitoring these liabilities can provide insights into the company's financial stability and its ability to fulfill its commitments.

The balance sheet data also provides comparative figures for previous years, allowing potential franchisees to assess trends in Kitchen Solvers' financial performance. For instance, the current and long-term contract liabilities were $210,682 and $1,236,455 respectively as of December 31, 2023, and $193,047 and $1,082,638 as of December 31, 2022. Reviewing these trends helps in evaluating the company's growth and financial management over time.

It is important for prospective franchisees to consult with a financial advisor to fully understand the implications of these liabilities and how they might affect the franchisor's ability to support its franchisees. A thorough review of the balance sheet, along with other financial statements, is essential for making an informed investment decision.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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