What was the total amount of noncurrent contract liabilities for Kitchen Solvers in 2023?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
ined, therefore these costs are recognized as contract assets over the life of the contract, which is 10 years. The contract assets and liabilities are included on the accompanying balance sheets as follows:
| 2024 | 2023 | 2022 | |||||
|---|---|---|---|---|---|---|---|
| Contract assets - Current | $ | (138,404) | $ | (118,404) | $ | (98,129) | |
| Contract assets - Noncurrent | (787,811) | (746,214) | (659,193) | ||||
| Contract liabilities - Current | 257 |
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the total amount of noncurrent contract liabilities for 2023 was $1,236,455. This figure represents the obligations Kitchen Solvers has to provide goods or services for which they have already received payment, where the fulfillment of these obligations extends beyond the current year.
For a prospective Kitchen Solvers franchisee, understanding contract liabilities is crucial because it reflects the company's financial obligations related to ongoing or future services. A high amount of noncurrent contract liabilities could indicate substantial future service commitments. This could impact the resources available for supporting new franchisees or other business activities.
It is important to note that contract liabilities are distinct from other types of liabilities, such as accounts payable or loans. They specifically relate to obligations to provide services or goods in the future. Reviewing these figures in the context of Kitchen Solvers' overall financial health provides a more complete picture of the company's stability and future prospects.