What was the total value of Kitchen Solvers' contract assets as of December 31, 2024?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Balance Sheets | ||||||
|---|---|---|---|---|---|---|
| December 31, 2024, 2023, and 2022 | ||||||
| Assets | 2024 | 2023 | 2022 | |||
| Other assets: | ||||||
| Territory held for sale | 12,798 | 12,798 | 12,798 | |||
| Contract assets | 787,811 | 746,214 | 659,193 | |||
| Right of use asset - Operating leases | 13,203 | 53,324 | 63,586 | |||
| Goodwill | 366,651 | 366,651 | 366,651 | |||
| Total other assets | 1,180,463 | 1,178,987 | 1,102,228 | |||
| TOTAL ASSETS | Liabilities and Members' Equity | $ 2,111,389 | $ 1,716,210 | $ 1,483,867 | ||
| 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' 2025 Franchise Disclosure Document, the company's total contract assets as of December 31, 2024, were valued at $787,811. This figure represents the future economic benefits that Kitchen Solvers expects to receive from its contracts.
Contract assets typically arise when Kitchen Solvers has performed its obligations under a contract, but payment is contingent on meeting further conditions. This can include ongoing projects or services where revenue is recognized over time as work is completed. The value of these assets reflects the amount Kitchen Solvers anticipates collecting once all contractual requirements are fulfilled.
Prospective franchisees should understand how Kitchen Solvers manages and values its contract assets, as this can impact the company's financial stability and future revenue streams. It is also important to note that in addition to the total contract assets, the balance sheet also lists 'Contract assets - Current' at $138,404, which may represent the portion of contract assets expected to be realized within one year.