How much did Golden Krust Caribbean Restaurant collect in advertising charges in 2023?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
57,643 |
GOLDEN KRUST FRANCHISING, INC. CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | |
|---|---|---|
| REVENUES | ||
| Royalties | $ 4,094,692 | $ 3,693,105 |
| Advertising Charges | 1,718,952 | 1,503,874 |
| Franchising Fees | 122,508 | 95,050 |
| Total Franchise Revenues | 5,936,152 | 5,292,029 |
| Company Owned Restaurant Sales | 2,631,341 | 2,896,104 |
| Cost of Sales | (1,071,371) | (1,226,078) |
| Restaurant Gross Profit | 1,559,970 | 1,670,026 |
| GROSS PROFIT | 7,496,122 | 6,962,055 |
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 7,038,995 | 5,856,268 |
| INCOME FROM OPERATIONS | 457,127 | 1,105,787 |
| OTHER INCOME (EXPENSE) | ||
| Interest Income | 188 | 8,756 |
| Interest Expense | (122,609) | (38,455) |
| Other Expense | (176,975) | (6,572) |
| Other Expense, Net | (299,396) | (36,271) |
| INCOME BEFORE RECOVERIES OF (PROVISION FOR) |
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 collected $1,718,952 in advertising charges in 2023. This figure represents the funds contributed by franchisees as a percentage of their sales, which are then earmarked for advertising and promotional activities related to the Golden Krust Caribbean Restaurant brand.
For a prospective franchisee, this information is relevant for understanding the scale of advertising investment made by the franchise system. It demonstrates the financial commitment to brand promotion and marketing efforts. Franchisees typically benefit from these advertising initiatives through increased brand awareness and customer traffic.
It's important to note that these advertising funds are kept separate and are intended to cover advertising expenses. According to the FDD, these funds cannot be used for Golden Krust Caribbean Restaurant's general operating expenses, although there may be exceptions detailed elsewhere in the document. Any unspent advertising revenues are recorded as accrued expenses on the balance sheets.
In 2023, Golden Krust Caribbean Restaurant spent more on advertising than it collected in revenue from franchisees, resulting in no accrued advertising expenses at the end of the year. This suggests that the company is actively investing in marketing and promotion to support its franchisees.