What were the purchases of property and equipment for Golden Krust Caribbean Restaurant in 2023?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
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| 2023 | 2022 | |||
|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Net Income | $ 82,149 | $ 1,141,393 | ||
| Adjustments to Reconcile Net Income to Net Cash | ||||
| Used by Operating Activities: | ||||
| Depreciation and Amortization Expense | 71,983 | 91,007 | ||
| Noncash Lease Expense | 4,432 | 54,540 | ||
| Bad Debt Expense | 606,734 | 196,574 | ||
| Change in Allowance for Notes Receivable | - | 14,999 | ||
| Loss on Disposal of Equipment | 92,339 | 3,400 | ||
| (Increase) Decrease in Operating Assets: | ||||
| Accounts Receivable | (614,033) | (477,332) | ||
| Inventory | 5,837 | 3,715 | ||
| Prepaid Expenses | 2,638 | 35,908 | ||
| Other Noncurrent Assets | - | 31,812 | ||
| Increase (Decrease) in Operating Liabilities: | ||||
| Accounts Payable | (244,516) | 277,304 | ||
| Accrued Expenses | (19,736) | (2,369,929) | ||
| Deferred Franchise Fees | (36,508) | (95,050) | ||
| Other Current Liabilities | (13,254) | (38,144) | ||
| Deferral of Employment Tax Deposits and Payments | - | (50,438) | ||
| Employee Retention Credit | - | 580,958 | ||
| Net Cash Used by Operating Activities | (61,935) | (599,283) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| Purchases of Property and Equipment | (25,444) | (21,215) | ||
| Net Cash Used by Investing Activities | (25,444) | (21,215) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Increase (Decrease) in Notes Receivable | 25,274 | (87,246) | ||
| Borrowings on Note Payable - Related Party | 5,180,961 | - | ||
| Repayments on Note Payable - Related Party | (84,410) | - | ||
| Increase (Decrease) in Due from Related Party | (24,491) | 322 | ||
| Increase (Decrease) in Due to Related Parties | (5,598,977) | 1,604,275 | ||
| Net Cash Provided (Used) by Financing Activities | (501,643) | 1,517,351 | ||
Source: Item 23 — RECEIPT (FDD pages 35–153)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the company's purchases of property and equipment in 2023 totaled $25,444. This figure reflects the capital expenditures made by Golden Krust Franchising, Inc. during that year related to acquiring or upgrading physical assets. These assets are likely used to support the company's operations and infrastructure.
For a prospective franchisee, understanding this figure provides insight into the level of investment Golden Krust Caribbean Restaurant makes in its own infrastructure. While this number reflects the franchisor's investment, franchisees will also need to make their own investments in property and equipment to establish and operate their individual locations. These costs are separate from the franchisor's expenses.
It's important to note that this number only reflects the franchisor's purchases and not the investments made by individual franchisees in establishing their own Golden Krust Caribbean Restaurant locations. Franchisees should refer to other sections of the FDD, such as Item 7, to understand their potential initial investment, including property and equipment costs.