What was the total lease cost for Kitchen Solvers in one of the reported years?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
eases its facilities under three-year leases. Terms of the leases call for monthly base rent payments through 2025.
The following summarizes the components of lease expense as of December 31:
| Lease cost: | $ | 50,403 | $ | 40,651 | $ | 33,613 |
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the total lease cost is detailed in the financial statements. The provided table shows the total lease cost for several years. In one of the reported years, the total lease cost was $50,403. The document also mentions operating lease costs, which appear to be the same as the total lease cost in the provided table.
Specifically, the table provides figures for multiple years, allowing a prospective franchisee to see how these costs have varied. For example, the total lease cost was $40,651 in another year and $33,613 in yet another year. This information is useful for understanding the historical lease expenses incurred by Kitchen Solvers.
Additionally, the notes to the financial statements clarify that Kitchen Solvers leases its facilities under three-year leases with monthly base rent payments extending through 2025. These leases may include options to renew, potentially extending the lease term by up to three years at Kitchen Solvers' discretion. However, these renewal options are not recognized in the measurement of right-of-use assets and liabilities. Understanding these lease terms and renewal options is crucial for assessing the long-term financial obligations related to Kitchen Solvers' facilities.