What was the income before recoveries of income taxes 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 |
| 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 | ||
| INCOME TAXES | 1,069,516 | (637,280) |
| RECOVERIES OF (PROVISION FOR) INCOME TAXES | 71,877 | (21,750) |
| NET INCOME (LOS |
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 income before recoveries of income taxes for the year ended December 31, 2022, was $1,069,516. This figure represents the company's profitability before accounting for any income tax recoveries or provisions.
For a prospective franchisee, this number provides insight into the financial performance of Golden Krust Caribbean Restaurant's franchising operations. It indicates the earnings generated before considering the impact of income taxes, which can be influenced by various factors such as changes in tax laws or the availability of tax credits.
It's important to note that this income figure is specific to Golden Krust Caribbean Restaurant's franchising business and does not reflect the financial performance of individual franchise locations. Franchisees should conduct their own due diligence and consult with financial advisors to assess the potential profitability of operating a Golden Krust Caribbean Restaurant franchise.