What is the range of values in row 27 of the Golden Krust Caribbean Restaurant financial table?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| (q) Non-competition | Section VII | No controlling ownership interest in, or | |
|---|---|---|---|
| covenants during the | perform services for, competitive business | ||
| term of the franchise | anywhere. | ||
| (r) Non-competition covenants after the franchise is terminated or expires | Section XVI.D. | No interest in competing business for 2 years at, or within 10 miles of premises of Restaurant or within 5 miles of any other Golden Krust Restaurant that is in operation or under construction (same restrictions apply after assignment) | |
| (s) Modification of the agreement | Section XVIII.G. | No modifications generally but Brand Standards Manual and System Standards are subject to change. | |
| (t) Integration/Merger clause | Section XVIII.H. | Only the terms of the Franchise Agreement (including the Brand Standards Manual) are binding. Any other promises may not be enforceable. Nothing in the Franchise Agreement or in any related agreement is intended to disclaim our representations made in the Franchise Disclosure Document | |
| (u) Dispute resolution by | Section XVIII.E. | Except for certain claims, all disputes must be | |
| arbitration or | arbitrated in White Plains, New York (subject | ||
| mediation | to state law) | ||
| (v) Choice of forum | Section XVIII.F. | Arbitration shall be in New York (subject to state law). | |
| (w) Choice of law | Section XVIII.F. | New York law applies (subject to state law) | |
| $1,645,887 - $4,118,389 | 27 | $2,156,329 | $2,512,125 |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 29–32)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, row 27 of the financial table contains a range of values from $1,645,887 to $4,118,389. This data is part of a financial performance representation based on reports from 106 fully-reporting franchised Golden Krust Caribbean Bakery and Grill Restaurants that operated for the entire 2023 fiscal year. The table is organized into quartiles based on gross sales, with the first quartile representing the 26 locations with the highest gross sales.
It's important to note that these figures represent gross revenues, which are not net of costs of goods sold or other operating expenses. The FDD explicitly states that these gross revenues do not reflect the cost of sales, operating expenses, or other costs that must be deducted to obtain net income or profit. Prospective franchisees must consider expenses such as inventory, labor, rent, pre-opening expenses, depreciation, taxes, insurance, royalties, advertising fees, professional fees, and bank charges, among others.
Golden Krust Caribbean Restaurant emphasizes that individual results may differ, and there is no assurance that a franchisee will achieve similar sales figures. The FDD advises careful consideration and evaluation of all expenses to assess the potential operating profit, net income, and cash flow of a Golden Krust Caribbean Bakery and Grill Restaurant. Franchisees should request written substantiation for the financial performance representation to further evaluate the data and its applicability to their specific circumstances.