What was the interest income 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 the 2024 Franchise Disclosure Document, Golden Krust Caribbean Restaurant's interest income for the year ending December 31, 2021, was $4,634. This figure is part of the broader financial overview presented in the document. It reflects income earned from interest-bearing assets or investments held by the company during that period.
Interest income is typically a minor revenue stream for franchise companies like Golden Krust Caribbean Restaurant, as their primary income is derived from royalties, franchise fees, and sales from company-owned restaurants. The interest income can fluctuate based on the company's cash management strategies and prevailing interest rates. For a prospective franchisee, this number by itself is not particularly impactful, but it provides a more complete picture of the company's overall financial health and diverse income streams.
It's important to note that while the FDD provides this specific figure, it does not detail the types of investments or accounts that generated this interest income. Understanding the sources of this income could give a franchisee a better sense of the company's financial strategies. Interest income is reported under 'Other Income (Expense)' on the financial statements.