What was the total amount of Kitchen Solvers' cost of goods sold in 2023?
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 | - | - | |||
| 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 |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the total cost of goods sold for the company in 2023 was $73,145. This figure represents the direct costs attributable to the production of the goods sold by Kitchen Solvers during that year. These costs can include the cost of materials, direct labor, and other direct expenses related to the manufacturing or production of goods.
For a prospective franchisee, understanding the cost of goods sold is crucial as it directly impacts the profitability of their franchise. A lower cost of goods sold, relative to revenue, generally indicates higher profitability. Monitoring this figure over time can help franchisees identify trends and potential areas for cost savings or efficiency improvements.
It's important to note that this figure reflects the cost of goods sold at the corporate level and may not directly translate to the costs experienced by individual franchisees. Franchisees should analyze their own cost structures and compare them to industry benchmarks to ensure they are operating efficiently. Additionally, prospective franchisees should inquire about the factors that influence the cost of goods sold and any strategies Kitchen Solvers employs to manage these costs.