What were the purchases of property and equipment for Golden Krust Caribbean Restaurant in 2022?
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 exact figure for Golden Krust Caribbean Restaurant's purchases of property and equipment in 2022, as the provided excerpts from the 2024 Franchise Disclosure Document do not contain this specific financial data.
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 recorded at cost, minus any accumulated depreciation and amortization. It also specifies that maintenance, repairs, and minor renewals are expensed as incurred, while major renewals or improvements over $5,000 are capitalized. Depreciation is calculated using the straight-line method over the estimated useful life of the assets, typically ranging from five to ten years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the improvement.
To obtain the specific amount spent on property and equipment purchases in 2022, a prospective Golden Krust Caribbean Restaurant franchisee should review the complete audited financial statements in the FDD or request this information directly from the franchisor. Understanding these capital expenditure trends is crucial for assessing the financial health and investment requirements of the franchise.