What was the reported cost of food and beverage for Golden Krust Caribbean Restaurant in 2022?

According to the 2024 Franchise Disclosure Document, Golden Krust Caribbean Restaurant's company-owned restaurants purchased food and beverage products from Golden Krust Caribbean Bakery, Inc. for approximately $922,000 in 2022.

This indicates a significant relationship between Golden Krust Caribbean Restaurant and its related bakery, as the bakery supplies a substantial portion of the food and beverage products sold in the company-owned restaurants. This related-party transaction is important for prospective franchisees to understand, as it highlights the reliance on a specific supplier and the potential impact of that relationship on the cost of goods sold.

For a franchisee, this means that a large portion of their food and beverage costs could be tied to the pricing and availability from this related bakery. Any changes in the bakery's operations or pricing strategies could directly affect the franchisee's profitability. It would be prudent for potential franchisees to investigate the terms of the supply agreement with the bakery and understand how pricing is determined to assess the potential risks and benefits.