What was the net income 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 | ||
| IN |
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 net income for the company in 2022 was $1,141,393. This figure represents the company's profit after all expenses, including the cost of sales, selling, general, and administrative expenses, interest expenses, and income taxes, have been deducted from its total revenues. In 2021, the company had a net loss of ($659,030).
For a prospective franchisee, this net income figure provides insight into the financial health and profitability of Golden Krust Caribbean Restaurant. A positive net income suggests that the company is operating efficiently and generating more revenue than it spends. This can be a reassuring sign for franchisees who are considering investing in the brand. The increase in net income from 2021 to 2022 could indicate improved business strategies or market conditions.
It is important to note that this net income reflects the performance of Golden Krust Franchising, Inc., which primarily earns revenue through royalties, advertising charges, and franchising fees, as well as sales from company-owned restaurants. Franchisees should also consider the performance of individual franchise locations, which may vary based on factors such as location, management, and local market conditions. Reviewing the company's complete financial statements and consulting with a financial advisor is recommended to fully understand the financial implications of investing in a Golden Krust Caribbean Restaurant franchise.