What was the employee retention credit for Golden Krust Caribbean Restaurant in 2022?
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 |
| R |
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 did not receive an employee retention credit in 2022. However, the company did receive $580,958 in employee retention tax credits during 2022, which they had applied for in 2021. These credits were made available under the CARES Act to eligible employers whose businesses were financially impacted by COVID-19. Golden Krust Caribbean Restaurant accounts for these credits as other income on their consolidated statements of operations.
For a prospective franchisee, this indicates that Golden Krust Caribbean Restaurant was able to leverage government programs to offset some of the financial challenges posed by the COVID-19 pandemic. While these specific credits are not ongoing, it demonstrates the company's ability to seek out and utilize available resources during times of economic difficulty.
It's important to note that these credits are a one-time occurrence, and a potential franchisee should not expect similar credits to be available in the future. Instead, they should focus on the company's overall financial health and its strategies for long-term growth and stability.