What was the change in accounts payable for Golden Krust Caribbean Restaurant in 2023?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
ted statements of operations, were $142,186 and $145,391 during 2023 and 2022, respectively.
During 2023 and 2022, Bakery sales to the Company-owned restaurants aggregated approximately $605,000 and $922,000, respectively.
The Company also entered into an agreement with Bakery, whereby any related party receivables or payables will accrue interest at a rate of 1% per annum on any balances between the two companies. At December 31, 2023 and 2022, there were amo
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Golden Krust Caribbean Restaurant's financial statements include information about amounts due between the company and Golden Krust Caribbean Bakery, Inc. However, the document does not explicitly detail the specific changes in 'accounts payable' for 2023. Instead, it focuses on related party transactions and balances between the two companies.
The FDD mentions that at December 31, 2023, the amount due between the two companies was $75,031, while at December 31, 2022, it was $4,657,186. This significant decrease in the amount due to the related party may reflect changes in payment terms, increased payments, or other financial arrangements between Golden Krust Franchising, Inc. and Golden Krust Caribbean Bakery, Inc.
To fully understand the changes in accounts payable, a prospective franchisee should request a detailed breakdown of the company's accounts payable ledger from Golden Krust Caribbean Restaurant. This would provide a clearer picture of the company's payment obligations and how they have changed over time. Understanding these details is crucial for assessing the financial health and stability of the franchise system.