What was the value of Kitchen Solvers' leasehold improvements as of December 31, 2024?

According to Kitchen Solvers' 2025 Franchise Disclosure Document, the value of leasehold improvements as of December 31, 2024, was $33,841. This figure represents the cost of improvements made to leased properties that Kitchen Solvers uses for its operations. Leasehold improvements are capitalized on the balance sheet and depreciated over their useful life or the term of the lease, whichever is shorter.

For a prospective franchisee, understanding the value of leasehold improvements can provide insight into Kitchen Solvers' investment in its physical locations. It's important to note that this value reflects the franchisor's leasehold improvements, not those of individual franchisees. Franchisees will typically need to make their own leasehold improvements when setting up their Kitchen Solvers franchise location, and these costs can vary significantly depending on the size and condition of the space.

Reviewing the balance sheets over the three years presented (2022-2024) shows that Kitchen Solvers did not list leasehold improvements in 2022 or 2023. The $33,841 listed for 2024 is the first time leasehold improvements have been listed as an asset. This could indicate a change in Kitchen Solvers' strategy or accounting practices. A potential franchisee should inquire about the nature of these improvements and whether Kitchen Solvers provides any guidance or support for franchisees in managing their own leasehold improvements.

Understanding the depreciation of these assets is also crucial. While the gross value of leasehold improvements was $33,841, the accumulated depreciation reduces the net property and equipment value. This depreciation reflects the expense recognized over time as the leasehold improvements are used. Franchisees should consider how depreciation will impact their own financial statements and tax obligations.