What was the comprehensive income (loss) for Golden Krust Caribbean Restaurant in 2021?
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 comprehensive income (loss) for the company in 2021 was a loss of $664,096. This figure represents the net income (loss) adjusted for other comprehensive income (loss). In 2021, the net loss was ($659,030) and other comprehensive loss was ($5,066), resulting in the total comprehensive loss of ($664,096).
For a prospective franchisee, this indicates that Golden Krust Caribbean Restaurant experienced a significant financial loss in 2021. While past performance is not indicative of future results, it's crucial to understand the factors contributing to this loss. This could be due to various reasons such as increased operating expenses, decreased revenues, or other economic factors affecting the business.
It is important for potential franchisees to investigate the reasons behind the loss and assess the company's financial stability and future prospects. Understanding the strategies Golden Krust Caribbean Restaurant has implemented to address the loss and improve profitability is essential. This information can help franchisees make an informed decision about investing in the franchise and evaluate the potential risks and rewards associated with the business opportunity. Franchisees should also compare these figures with more recent financial data to understand the trend and current financial health of the company.
Furthermore, prospective franchisees should consult with financial advisors and legal professionals to thoroughly analyze the financial statements and assess the overall viability of the franchise investment. Understanding the franchisor's financial performance is a critical step in the due diligence process before committing to a franchise agreement.