What was the operating lease expense for Golden Krust Caribbean Restaurant in 2023?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
to certain minimum increases. Additionally, the agreements generally require the Company to pay real estate taxes, insurance, and repairs.
The following table provides quantitative information concerning the Company's leases.
| 2023 | 2022 | ||
|---|---|---|---|
| Lease Expense: | |||
| Operating Lease Expense | $ 104,086 | $ | 127,315 |
| Other Information: | |||
| Cash Paid for Amounts Included in the Measurement | |||
| of Lease Liabilities | |||
| Operating Cash Flows from Operating Leases | $ 98,247 | $ | 87,184 |
| ROU Assets Obtained in Exchange for New | |||
| Operating Lease Liabilities | $ - | $ | 686,739 |
| Weighted-Ave |
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 operating lease expense for 2023 was $104,086. The document also provides comparative data for 2022, when the operating lease expense was $127,315. This information is part of the broader financial statements that offer insights into the company's financial health and obligations.
For a prospective franchisee, understanding the operating lease expenses is crucial as it reflects the cost associated with leasing property or equipment necessary for running the business. The decrease in operating lease expense from 2022 to 2023 could indicate changes in lease agreements, a reduction in leased assets, or renegotiated lease terms. Franchisees should inquire about the typical lease arrangements and costs they might incur when setting up their own Golden Krust Caribbean Restaurant location.
Additionally, the FDD includes other lease-related information, such as cash paid for amounts included in the measurement of lease liabilities, which was $98,247 in 2023 and $87,184 in 2022. It also mentions ROU (Right-of-Use) assets obtained in exchange for new operating lease liabilities, which was $- in 2023 and $686,739 in 2022. The weighted-average remaining lease term for operating leases was 10.7 years in 2023 and 9.3 years in 2022, with weighted-average discount rates of 1.47% and 1.48% respectively. These figures provide a comprehensive view of Golden Krust Caribbean Restaurant's leasing activities and their financial impact.
Prospective franchisees should carefully review these figures and discuss with Golden Krust Caribbean Restaurant the specifics of leasing arrangements they will need to secure. Understanding these costs and terms is essential for accurate financial planning and assessing the overall profitability of a franchise location.