What was the net income for Golden Krust Caribbean Restaurant during 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 the 2024 Franchise Disclosure Document, Golden Krust Caribbean Restaurant's net income for the year ending December 31, 2022, was $1,141,393. This figure represents the company's profit after all expenses, including the cost of sales, administrative expenses, interest, and taxes, have been deducted from its total revenues. In 2021, Golden Krust Caribbean Restaurant experienced a net loss of ($659,030). This indicates a significant turnaround in the company's financial performance from 2021 to 2022.
For a prospective franchisee, this net income figure is an important indicator of the financial health and profitability of Golden Krust Caribbean Restaurant. A positive net income suggests that the company is well-managed and has a sustainable business model. It also implies that the franchisor is capable of supporting its franchisees and investing in the growth of the brand. However, it is essential to consider this figure in conjunction with other financial metrics and qualitative factors, such as the company's growth strategy, competitive landscape, and franchisee satisfaction, to get a comprehensive understanding of the franchise opportunity.
It's also important to note that the net income reported in the FDD reflects the financial performance of the franchisor, Golden Krust Franchising, Inc., and its company-owned restaurants. This may not be directly indicative of the potential profitability of an individual franchise location. Prospective franchisees should conduct their own due diligence and financial analysis, including reviewing the Item 19 financial performance representations in the FDD and speaking with existing franchisees, to assess the potential financial returns of investing in a Golden Krust Caribbean Restaurant franchise.