What was the total amount of Kitchen Solvers' income from operations 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 company's income from operations for the year ended December 31, 2023, was $209,004. This figure represents the company's earnings before considering other income, expenses like interest, and taxes. It is calculated by subtracting the general and administrative expenses ($1,327,622) and the cost of goods sold ($73,145) from the total revenue ($1,609,771).
For a prospective franchisee, this number provides insight into the core profitability of Kitchen Solvers' main business activities. It demonstrates how efficiently the company generates income from its franchise sales, other franchise fees and rebills, and manufacturing sales relative to its operational costs. A higher income from operations suggests a more robust and efficient business model.
However, it's important to note that this figure does not reflect the company's overall net income, which also factors in other income and expenses. In 2023, Kitchen Solvers' net income was $210,640, slightly higher than the income from operations due to other income exceeding interest expenses. Franchisees should consider both figures when evaluating the financial health of Kitchen Solvers, but the income from operations is a key indicator of the underlying business's performance.