What was the total value of Kitchen Solvers' contract liabilities 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 | |||
| Current liabilities: | ||||||
| Contract liabilities - Current | 257,082 | 210,682 | 193,047 | |||
| Long-term liabilities: | ||||||
| Contract liabilities | 1,419,466 | 1,236,455 | 1,082,638 |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the company's balance sheet lists both current and long-term contract liabilities. As of December 31, 2024, the current contract liabilities totaled $257,082, while the long-term contract liabilities amounted to $1,419,466. Therefore, the total contract liabilities for Kitchen Solvers as of that date were the sum of these two figures.
Contract liabilities represent the obligation of Kitchen Solvers to provide goods or services to customers for which they have already received payment. These liabilities are considered 'current' if they are expected to be settled within one year, and 'long-term' if the settlement is expected beyond one year. For a prospective franchisee, understanding the breakdown between current and long-term liabilities can provide insight into the company's financial obligations and revenue recognition practices.
It is important to note that these figures reflect Kitchen Solvers' overall financial obligations related to contracts. Franchisees should consider these liabilities in the context of the company's assets and overall financial health, as detailed in the balance sheet. Reviewing these figures over the three-year period (2022-2024) can also reveal trends in Kitchen Solvers' contract liabilities and business operations.