What was the total revenue recognized from contracts with customers for Kitchen Solvers in 2022?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
and materials. Accordingly, the revenue for these fees is recognized monthly.
The following table provides information about revenue recognized from contracts with customers for the year ended December 31:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Initial franchise fee | $ 259,581 | $ 232,748 | $ 193,048 |
| Supplies package | 37,350 | 70,512 | 75,559 |
| Royalty fee | 984,777 | 888,476 | 807,670 |
| Technology fee | 144,481 | 122,292 | 105,750 |
| Brand fund fee | 87,485 | 76,14 |
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the total revenue recognized from contracts with customers in 2022 was $1,254,141. This figure represents the income Kitchen Solvers generated from its franchise agreements, including initial franchise fees, supplies packages, royalty fees, technology fees, and brand fund fees. This revenue is a key indicator of the brand's financial performance and stability.
For a prospective Kitchen Solvers franchisee, understanding the revenue streams is crucial. The initial franchise fee contributes $193,048 to the total revenue, while ongoing fees like royalty, technology, and brand fund fees make up a significant portion, totaling $807,670, $105,750, and $72,114 respectively. This breakdown highlights the importance of sustained franchisee performance and adherence to the Kitchen Solvers system, as these ongoing fees are directly tied to franchisee sales and operational success.
The supplies package revenue, which was $75,559 in 2022, indicates the reliance on franchisees purchasing supplies directly from Kitchen Solvers. This could be a benefit to franchisees by ensuring quality and consistency, but it also means franchisees need to factor in these costs when projecting their expenses. The overall revenue trend from 2022 to 2024 shows growth, which may be an attractive point for potential franchisees, suggesting a healthy and expanding franchise system.