What was the amount of the employee retention credit for Golden Krust Caribbean Restaurant in 2021?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
| | Year Ended December 31, 2022 | 2021 | |-----------------------------------------------|---------------------------------|-------------| | REVENUES | | | | Royalties | $ 3,566,598 $ | 3,041,453 | | Advertising Charges | 1,503,874 | 982,160 | | Franchising Fees | 95,050 | 99,592 | | Total Franchise Revenues | 5,165,522 | 4,123,205 | | Company owned restaurant sales | 2,896,104 | 2,976,981 | | Cost of sales | (1,226,078) | (1,226,592) | | Restaurant Gross Profit | 1,670,026 | 1,750,389 | | Total Gross Profit | 6,835,548 | 5,873,594 | | SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 5,729,761 | 7,611,396 | | INCOME (LOSS) FROM OPERATIONS | 1,105,787 | (1,737,802) | | OTHER INCOME (EXPENSE): | | | | Interest income | 8,756 | 4,634 | | Employee retention credit | - | 580,958 | | Related party loan forgiveness | - | 567,961 | | Interest expense | (51,235) | (40,408) | | Other income (expense) | 6,208 | (12,623) | | Total Other (Expense) Income, net | (36,271) | 1,100,522 | | INCOME (LOSS) BEFORE PROVISION FOR | | | | INCOME TAXES | 1,069,516 | (637,280) | | RECOVERIES OF (PROVISION FOR) INCOME TAXES | 71,877 | (21,750) | | NET INCOME (LOSS) | 1,141,393 | (659,030) | | OTHER COMPREHENSIVE INCOME (LOSS) | - | (5,066) | | COMPREHENSIVE INCOME (LOSS) | $ 1,141,393 $ | (664,096) | accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the company received an employee retention credit of $580,958 in 2021. This credit was applied for under the CARES Act and was received during 2022.
The employee retention tax credit was a refundable federal payroll tax credit available to eligible employers whose businesses were financially impacted by COVID-19. Golden Krust Caribbean Restaurant accounted for this credit as other income on its consolidated statements of operations.
For a prospective franchisee, this information provides insight into how Golden Krust Caribbean Restaurant managed its finances during the COVID-19 pandemic. It demonstrates the company's ability to leverage available relief programs to offset financial impacts and potentially improve its overall financial performance. While this specific credit is no longer available, it highlights the importance of understanding how the franchisor navigates economic challenges and utilizes financial resources.