What was the bad debt expense (recoveries) for Golden Krust Caribbean Restaurant in 2021?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and | | |
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 company's financial statement for the year 2021 includes information on revenues, expenses, and other income items. Specifically, the document indicates a line item for "RECOVERIES OF (PROVISION FOR) INCOME TAXES" for the year ended December 31, 2021.
For the year 2021, Golden Krust Caribbean Restaurant reported a recovery of income taxes of $(21,750). This figure reflects an adjustment or refund related to income taxes, which positively impacted the company's net income for that year.
Prospective franchisees should note that this recovery is specifically related to income taxes and not a general "bad debt expense (recoveries)". The FDD does not specifically list a "bad debt expense (recoveries)" line item. Franchisees should consult the full financial statements and seek clarification from Golden Krust Caribbean Restaurant regarding any potential bad debt expenses and how they are accounted for.