What was the value of Kitchen Solvers' 'Territory held for sale' as of December 31, 2024?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
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 'Territory held for sale' as of December 31, 2024, was $12,798. This figure is listed under the 'Other assets' section of the balance sheet, providing a snapshot of the company's assets at that specific point in time. The same value ($12,798) was also recorded for the years ended December 31, 2023, and 2022.
'Territory held for sale' typically represents the cost associated with territories that Kitchen Solvers intends to sell to new or existing franchisees. This can include expenses related to market analysis, legal fees, and other costs directly attributable to preparing the territory for sale. The consistent value over three years may suggest that Kitchen Solvers did not actively buy or sell any territories during this period, or that the costs associated with territory sales remained relatively stable.
For a prospective Kitchen Solvers franchisee, this information provides insight into how the company manages its territory assets. It's important to understand the conditions under which Kitchen Solvers buys or sells territories, and whether these transactions could impact existing franchisees. A potential franchisee should inquire about the company's strategy for territory management and how it supports franchisees in expanding their territories if they wish to do so.