What was the value of Kitchen Solvers' leasehold improvements in 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 | 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 | 366,6 |
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the value of their leasehold improvements in 2024 was $33,841. This figure represents the cost of any permanent changes or upgrades made to leased properties that Kitchen Solvers occupies. These improvements are considered assets because they add value to the property and benefit Kitchen Solvers during their lease term.
Leasehold improvements are typically amortized over the shorter of the lease term or the useful life of the improvement. This means Kitchen Solvers recognizes the expense of these improvements gradually over time, rather than all at once in the year they were made. The FDD also mentions that the depreciable life of leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise.
For a prospective Kitchen Solvers franchisee, this indicates the company does invest in improving its leased spaces. However, the relatively small amount suggests that these improvements may be limited or that Kitchen Solvers does not lease extensively improved properties. Franchisees should consider this when evaluating the financial health and investment strategies of Kitchen Solvers.
It's important to note that this figure only reflects the value of leasehold improvements at the corporate level and does not reflect any investments franchisees may make in their own locations. Franchisees should inquire about typical leasehold improvement costs for their specific territory and business model during their due diligence.