What was the reported value of equipment for Golden Krust Caribbean Restaurant in 2023?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| Useful Life | 2023 | 2022 | |
|---|---|---|---|
| Leasehold Improvements | Lesser of Lease | ||
| Life or 10 Years | $ 164,044 | $ 368,822 | |
| Equipment 5 Years | 91,087 | 165,724 | |
| Computer Software 5 Years | 73,982 | 73,982 | |
| Office Furniture and Fixtures 5 Years | 51,708 | 67,934 | |
| Total | 380,821 | 676,462 | |
| Less: Accumulated Depreciation | |||
| and Amortization | (257,812) | (447,322) | |
| Property and Equipment, Net | $ 123,009 | $ 229,140 |
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 reported value of equipment in 2023 was $91,087. The FDD also specifies that this equipment has a useful life of 5 years. This figure is part of a larger table that details various assets, including leasehold improvements, computer software, and office furniture and fixtures.
This information is relevant for prospective franchisees as it provides insight into the depreciable assets held by Golden Krust Caribbean Restaurant. The equipment value, along with other asset categories, contributes to the total assets of the company. Understanding the value and lifespan of these assets can help franchisees assess the financial health and investment requirements of the franchise.
It's important to note that the $91,087 represents the value of equipment before accounting for accumulated depreciation. The net value of property and equipment, after deducting accumulated depreciation, was $123,009 in 2023. This distinction is crucial for understanding the true book value of the assets.
Prospective franchisees should consider these figures in conjunction with other financial data in the FDD to gain a comprehensive understanding of the financial position of Golden Krust Caribbean Restaurant. Further due diligence, including consultation with financial advisors, is recommended to assess the implications of these asset values on the overall franchise investment.