What was the net value of property and equipment for Golden Krust Caribbean Restaurant in 2023?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
balances are expensed against the allowance.
Inventory:
Inventory consists of Company owned franchise food, beverage, and packing, and is stated at the lower of cost or net realizable value, determined on the first-in, first-out basis.
Property and Equipment:
Property and equipment are carried at cost less accumulated depreciation and amortization. Maintenance, repairs and minor renewal costs are charged to operations as incurred; major renewals or improvements over $5,000 are capitalized. Upon sale or retirement of property and equipment, the Company removes the related costs and accumulated depreciation from the accounts and any gain or loss is included in the results of current operations. Depreciation is computed on a straight-l
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
I am unable to provide the net value of property and equipment for Golden Krust Caribbean Restaurant in 2023, as this information is not present in the provided excerpts from the 2024 Franchise Disclosure Document. While the FDD includes financial statements and notes, it does not specify the exact net value of property and equipment for the stated year.
However, the FDD does include information on how Golden Krust Caribbean Restaurant accounts for property and equipment. The document states that property and equipment are carried at cost less accumulated depreciation and amortization. Maintenance, repairs, and minor renewal costs are expensed as incurred, while major renewals or improvements over $5,000 are capitalized. Depreciation is computed on a straight-line basis over the estimated useful life of the respective assets, typically ranging from five to ten years. Leasehold improvements are amortized over the shorter of the lease agreement's life or the estimated useful life of the improvement.
A prospective Golden Krust Caribbean Restaurant franchisee should ask the franchisor for the specific net value of property and equipment for 2023 to gain a clearer understanding of the company's asset base and financial position. This information would be helpful in assessing the company's financial health and making informed investment decisions.