What was the total value of Kitchen Solvers' inventory as of December 31, 2024?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
al statements as a whole.
Hancock & Robinson CPAs
La Crosse, Wisconsin
March 7, 2025
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 |
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the company's inventory was valued at $28,642 as of December 31, 2024. This figure represents the value of raw materials, priced at the lower of cost (using the first-in, first-out method) or market value. For a prospective franchisee, this indicates the level of investment Kitchen Solvers itself maintains in physical inventory.
It's important to note that this inventory is held by the franchisor, Kitchen Solvers, at the corporate level. Franchisees should inquire about their own inventory requirements, including what types of inventory they will need to maintain, the estimated value of that inventory, and the sourcing and supply chain logistics involved. Understanding these aspects is crucial for managing their own working capital effectively.
Furthermore, the FDD states that product sales are recognized when the product is shipped and all obligations of the company have been satisfied. This accounting practice affects how revenue is recorded and may have implications for franchisees in terms of sales reporting and inventory management. Franchisees should seek clarification on how this policy impacts their individual operations and financial reporting responsibilities.