What was the operating lease expense for Golden Krust Caribbean Restaurant in 2022?

According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the operating lease expense for the year ending December 31, 2022, was $127,315. This figure represents the cost incurred by Golden Krust Franchising, Inc. for leasing property or equipment used in its operations during that year.

For a prospective franchisee, understanding the operating lease expense is crucial because it provides insight into the company's financial obligations related to leased assets. This information, combined with other financial data, helps potential franchisees assess the overall financial health and stability of Golden Krust Caribbean Restaurant. It's important to note that this figure reflects the expenses of the parent company, Golden Krust Franchising, Inc., and not necessarily the expenses a franchisee would incur.

Additionally, the FDD provides other information related to leases, such as cash paid for amounts included in the measurement of lease liabilities, which totaled $87,184 in operating cash flows from operating leases. The value of right-of-use (ROU) assets obtained in exchange for new operating lease liabilities was $686,739. The weighted-average remaining lease term for operating leases was 9.3 years, and the weighted-average discount rate for operating leases was 1.48%. These metrics offer a more comprehensive view of the company's leasing activities and can be useful for a potential franchisee in evaluating the financial implications of leasing.

It is important for potential franchisees to consult with a financial advisor to fully understand the implications of these lease-related expenses and how they might impact their own franchise operations. Understanding the lease terms and associated costs is a critical part of due diligence before investing in a Golden Krust Caribbean Restaurant franchise.