What was the amount of recoveries of (provision for) income taxes for Golden Krust Caribbean Restaurant in 2022?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
57,643 |
GOLDEN KRUST FRANCHISING, INC. CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | |
|---|---|---|
| REVENUES | ||
| Royalties | $ 4,094,692 | $ 3,693,105 |
| Advertising Charges | 1,718,952 | 1,503,874 |
| Franchising Fees | 122,508 | 95,050 |
| Total Franchise Revenues | 5,936,152 | 5,292,029 |
| Company Owned Restaurant Sales | 2,631,341 | 2,896,104 |
| Cost of Sales | (1,071,371) | (1,226,078) |
| Restaurant Gross Profit | 1,559,970 | 1,670,026 |
| GROSS PROFIT | 7,496,122 | 6,962,055 |
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 7,038,995 | 5,856,268 |
| INCOME FROM OPERATIONS | 457,127 | 1,105,787 |
| OTHER INCOME (EXPENSE) | ||
| Interest Income | 188 | 8,756 |
| Interest Expense | (122,609) | (38,455) |
| Other Expense | (176,975) | (6,572) |
| Other Expense, Net | (299,396) | (36,271) |
| INCOME BEFORE RECOVERIES OF (PROVISION FOR) |
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 recoveries of (provision for) income taxes in 2022 was $71,877. This figure reflects the amount of income tax benefits the company realized during that year. Recoveries of income taxes can occur when a company has overpaid taxes in previous years and receives a refund, or when there are changes in tax laws that result in a reduction of tax liabilities.
For a prospective franchisee, understanding the tax implications and financial performance of Golden Krust Caribbean Restaurant is crucial. The recoveries of income taxes can contribute to the overall net income of the company, which in turn can affect the financial stability and profitability of the franchise system. It is important to note that tax situations can vary from year to year, and past performance is not necessarily indicative of future results.
It is advisable for potential franchisees to consult with a financial advisor or tax professional to fully understand the tax implications of investing in a Golden Krust Caribbean Restaurant franchise. This will help them assess the potential risks and rewards associated with the franchise opportunity and make informed decisions based on their individual financial circumstances. Reviewing the complete financial statements and understanding the notes is essential for a comprehensive financial due diligence.