What was the deferred franchise fees amount for Golden Krust Caribbean Restaurant in 2022?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| LIABILITIES AND SHAREHOLDERS' DEFICIT | |||
|---|---|---|---|
| CURRENT LIABILITIES: | |||
| Accounts payable | $ 880,096 | $ 602,792 | |
| Current lease liability - operating | 113,319 | - | |
| Accrued expenses | 450,358 | 2,820,287 | |
| Deferral of employment tax deposits and payments, current portion | - | 50,438 | |
| Other current liabilities | 22,582 | 60,726 | |
| Deferred franchise fees, current portion | 99,675 | 103,592 | |
| Other Current Liabilities | 1,566,030 | 3,637,835 | |
| LONG-TERM LIABILITIES: | |||
| Long-term lease liability - operating, less current maturities | 510,113 | - | |
| Deferred franchise fees, less current portion | 857,346 | 948,479 | |
| Amount owed to related parties | 5,725,747 | 4,121,472 | |
| Total Long-term Liabilities | 7,093,206 | 5,069,951 |
Source: Item 23 — RECEIPT (FDD pages 35–153)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the deferred franchise fees are divided into current and long-term portions. The current portion of deferred franchise fees for 2022 was $103,592, while the long-term portion was $948,479.
Therefore, the total deferred franchise fees for Golden Krust Caribbean Restaurant in 2022 can be calculated by adding these two figures together. This sum represents the total amount of franchise fees that Golden Krust Caribbean Restaurant had collected but not yet recognized as revenue during that year.
For a prospective franchisee, understanding deferred revenue is crucial because it reflects the financial obligations and revenue recognition practices of Golden Krust Caribbean Restaurant. It provides insight into how the company manages its finances and recognizes revenue over time, which can impact its financial stability and profitability.