What was the change in accrued expenses for Golden Krust Caribbean Restaurant in 2021?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
The Company maintains an advertising fund, which is accounted for separately, as described in the Company's Franchise Disclosure Document ("FDD"). The Company's franchisee's make monthly contributions to the advertising fund based on a percentage of their respective sales. These funds are segregated in order to pay for franchise related advertising and cannot be used to defray general operating expenses of the Company, except as otherwise described in the FDD. Any unspent advertising revenues are included in accrued expenses on the balance sheets. As of December 31, 2022 and 2021, there were no accrued advertising expenses, as the Company spent more in advertising than it recognized as advertising revenue from its franchisees.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the Golden Krust Caribbean Restaurant franchisee makes monthly contributions to an advertising fund based on a percentage of their sales. These funds are used for franchise-related advertising and cannot be used for general operating expenses, unless otherwise described in the FDD. Any unspent advertising revenues are included in accrued expenses on the balance sheets.
As of December 31, 2022 and 2021, there were no accrued advertising expenses, as Golden Krust Caribbean Restaurant spent more on advertising than it recognized as advertising revenue from its franchisees. This means that in both 2021 and 2022, the accrued advertising expenses were zero, so there was no change in accrued expenses between these two years.
It is important to note that this information pertains specifically to accrued advertising expenses. Other types of accrued expenses may exist within Golden Krust Caribbean Restaurant's financial statements, but the provided excerpt does not offer details on those.