What was the total amount of Kitchen Solvers' general and administrative expenses in 2022?
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 company's general and administrative expenses for the year 2022 totaled $1,362,454. This figure provides insight into the operational costs Kitchen Solvers incurs to manage its franchise system. These expenses typically include salaries, rent, utilities, and other overhead costs associated with running the business.
For a prospective franchisee, understanding the franchisor's general and administrative expenses is crucial as it reflects the financial health and stability of the company. A high or rapidly increasing figure could indicate potential financial strain, while a stable or decreasing figure might suggest efficient management. It's important to note that these expenses are part of the overall financial picture and should be considered alongside revenue, cost of goods sold, and net income to get a comprehensive understanding of Kitchen Solvers' financial performance.
When evaluating this information, a potential franchisee should compare Kitchen Solvers' general and administrative expenses to those of similar franchise systems in the home remodeling industry. This comparison can help determine whether Kitchen Solvers' expenses are in line with industry standards or if there are any significant discrepancies that warrant further investigation. Additionally, it's advisable to review Kitchen Solvers' financial statements over several years to identify any trends or patterns in their expenses.
Ultimately, understanding Kitchen Solvers' financial performance, including their general and administrative expenses, is a critical step in the due diligence process for any prospective franchisee. By carefully analyzing this information and comparing it to industry benchmarks, potential franchisees can make a more informed decision about whether to invest in a Kitchen Solvers franchise.