What was the total amount of Kitchen Solvers' operating lease liability as of December 31, 2023?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Statements of Cash Flows | |||||
|---|---|---|---|---|---|
| Years Ended December 31, 2024, 2023, and 2022 | 2024 | 2023 | 2022 | ||
| Increase (decrease) in cash: | |||||
| Cash flows from operating activities | |||||
| Net income | $ 464,580 | $ 210,640 | $ 232,257 | ||
| Adjustments to reconcile net income to net | |||||
| cash provided by operating activities: | |||||
| Depreciation | 10,880 | 6,555 | 1,585 | ||
| Noncash lease expense | 40,121 | 10,262 | - |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the noncash lease expense for the year ended December 31, 2023, was $10,262. This figure represents the expense recognized during that period related to operating leases that do not involve actual cash outlays.
For a prospective Kitchen Solvers franchisee, this indicates the level of expense the company incurs for its own lease obligations. It is important to note that this figure reflects Kitchen Solvers' corporate expenses and not the potential lease liabilities a franchisee might incur for their own business location. Franchisees should expect to have their own, potentially much larger, lease expenses depending on the size and location of their Kitchen Solvers franchise.
Understanding the franchisor's lease expenses can provide insight into their financial management and overall operational costs. However, franchisees must focus on their own projected expenses and revenue when evaluating the financial viability of a Kitchen Solvers franchise. Consulting with a financial advisor is recommended to fully assess the financial implications of leasing a business location.