What is the total amount of the revolving line of credit that Kitchen Solvers has with its local financial institution?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Contract liabilities - Net of contract assets, | ||||||
| beginning | $ 582,519 | $ | 518,363 | $ | 437,293 | |
| Initial franchise fee revenue recognized | (259,581) | (232,748) | (193,048) | |||
| Contract costs recognized | 138,404 | 120,154 | 105,366 | |||
| New contract costs paid | (200,000) | (228,250) | (292,000) | |||
| Collections of initial franchise fees | 488,991 | 405,000 | 460,752 | |||
| Contract liabilities - Net of contract assets, | ||||||
| ending | $ 750,333 | $ | 582,519 | $ | 518,363 |
**Note
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the company has a revolving loan agreement with a local financial institution. The total amount of this line of credit is $100,000. As of December 31, 2024, 2023, and 2022, the outstanding advances on this line of credit were $0.
For a prospective Kitchen Solvers franchisee, this information indicates the financial resources available to the franchisor. The fact that the outstanding balance on the line of credit was $0 for the past three years could suggest that Kitchen Solvers has not needed to draw upon this credit line, possibly reflecting positively on their financial stability.
However, it is important to note that a line of credit's availability can change, and the terms of the agreement (such as interest rates and repayment schedules) are not detailed in this excerpt. A potential franchisee may want to inquire about the specifics of this credit line and any other financial arrangements Kitchen Solvers has to fully assess the financial health and stability of the company.