What was the amount of other income (expense) for Golden Krust Caribbean Restaurant in 2022?
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 | ||
| IN |
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 total other expense, net, for the year ended December 31, 2022, was a loss of $36,271. This figure is derived from several components, including interest income of $8,756, interest expense of ($51,235), and other income (expense) of $6,208.
It is important to note that these figures are part of the consolidated financial statements, which include the financial performance of Golden Krust Franchising, Inc. and its subsidiaries. The "other income (expense)" category can fluctuate based on various financial activities, such as interest earned on deposits, interest paid on loans, and other miscellaneous financial transactions not directly related to the company's primary business operations.
For a prospective franchisee, understanding these figures provides insight into the financial management and performance of Golden Krust Caribbean Restaurant. While royalty and franchise fees are key revenue streams, these other income and expense items can impact the overall profitability of the company. Reviewing these figures over multiple years, as presented in the FDD, can help potential franchisees identify trends and assess the financial stability of the franchisor.
Prospective franchisees should consult with a financial advisor to fully understand the implications of these financial statements and how they might affect their investment in a Golden Krust Caribbean Restaurant franchise.