What entities are included in the consolidated financial statements for Golden Krust Caribbean Restaurant?

According to the 2024 Franchise Disclosure Document, the consolidated financial statements for Golden Krust Caribbean Restaurant include the accounts of the company and its wholly-owned subsidiaries. These subsidiaries are Golden Krust Caribbean Restaurants, Inc., GK Blue Hills Boston, Inc., and GK Hartford, Inc. The document specifies that all material intercompany accounts and transactions are eliminated during the consolidation process.

For a prospective franchisee, this means that the financial statements presented reflect the overall financial health of the entire Golden Krust Caribbean Restaurant organization, including its subsidiaries. By consolidating these entities, the franchisor provides a comprehensive view of its financial performance and position. This approach is standard in franchise systems with multiple corporate entities, as it gives a clearer picture of the entire organization's financial stability.

It is important to note that the financial statements also involve estimates and assumptions made by management, which could affect the reported amounts of assets, liabilities, revenues, and expenses. Prospective franchisees should be aware of this and consider the potential impact of these estimates on the financial results. Understanding the entities included in the consolidated statements helps franchisees assess the financial strength and stability of the entire Golden Krust Caribbean Restaurant network, not just the franchising entity itself.