What was the total current liabilities for Kitchen Solvers as of December 31, 2022?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Balance Sheets | ||||||
|---|---|---|---|---|---|---|
| December 31, 2024, 2023, and 2022 | ||||||
| Assets | 2024 | 2023 | 2022 | |||
| 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 |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, the company's total current liabilities as of December 31, 2022, were $310,169. Current liabilities are obligations due within one year, reflecting the company's short-term financial obligations. These liabilities include accounts payable, accrued liabilities, and deferred revenue.
For a prospective Kitchen Solvers franchisee, understanding the current liabilities is crucial for assessing the financial health and stability of the franchisor. A high level of current liabilities relative to current assets could indicate potential liquidity issues, which might affect the franchisor's ability to support its franchisees. Conversely, a manageable level of current liabilities suggests that the franchisor is in good financial standing and capable of meeting its short-term obligations.
It is important to note that the balance sheet provides a snapshot of Kitchen Solvers's financial position at a specific point in time. Reviewing the trend of current liabilities over the three years presented (2022, 2023 and 2024) can offer a more comprehensive understanding of the company's financial management and stability. The total current liabilities increased from $310,169 in 2022 to $376,045 in 2023 and $462,061 in 2024. Prospective franchisees should analyze these trends in conjunction with other financial metrics to gain a holistic view of the franchisor's financial health.