What was the total value of Kitchen Solvers' goodwill 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 assets: | ||||||
| Cash | $ 409,936 | $ 192,541 | $ 60,708 | |||
| Accounts receivable | 63,672 | 138,673 | 140,562 | |||
| Accounts receivable - related party | 174,152 | - | - | |||
| Contract assets - Current | 138,404 | 118,404 | 98,129 | |||
| Advances receivable | - | - | 74,472 | |||
| Other receivable | - | - | 3,260 | |||
| Inventory | 28,642 | 14,106 | - | |||
| Prepaid expenses | 2,277 | 2,293 | - | |||
| Total current assets | 817,083 | 466,017 | 377,131 | |||
| Property and equipment: | ||||||
| Equipment and fixtures | 34,201 | 34,201 | 34,201 | |||
| Technology equipment and software | 109,640 | 109,640 | 109,640 | |||
| Machinery and equipment | 86,429 | 73,253 | - | |||
| Vehicles | 6,500 | - | - | |||
| Leasehold improvements | 33,841 | - | - | |||
| Totals | 270,611 | 217,094 | 143,841 | |||
| Less - Accumulated depreciation | ( 156,768) | ( 145,888) | ( 139,333) | |||
| Net property and equipment | 113,843 | 71,206 | 4,508 | |||
| 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 |
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 goodwill as an asset. As of December 31, 2024, the value of Kitchen Solvers' goodwill was $366,651. This figure remained consistent from the end of 2023 and 2022.
Goodwill, in accounting terms, represents the intangible assets of a business, such as brand reputation, customer relationships, and proprietary knowledge, that are not separately identifiable. It often arises when a company acquires another business for a price higher than the fair market value of its net assets. The consistent goodwill value over three years may suggest a stable brand reputation and market position for Kitchen Solvers.
For a prospective Kitchen Solvers franchisee, understanding the goodwill value can offer insights into the brand's strength and customer recognition. A higher goodwill value typically indicates a stronger brand presence and potentially easier customer acquisition. However, it's important to note that goodwill is an intangible asset and its value can fluctuate based on various factors, including changes in market conditions and brand perception. Franchisees should consider this goodwill value as one factor among many when evaluating the overall financial health and brand strength of Kitchen Solvers.