What was the restaurant gross profit for Golden Krust Caribbean Restaurant in 2021?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
| Year Ended December 31, 2022 | 2021 | |
|---|---|---|
| REVENUES | ||
| Royalties | $ 3,566,598 $ | 3,041,453 |
| Advertising Charges | 1,503,874 | 982,160 |
| Franchising Fees | 95,050 | 99,5 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the restaurant gross profit for the company-owned restaurants in 2021 was $1,750,389. This figure represents the difference between the company-owned restaurant sales of $2,976,981 and the cost of sales of $1,226,592 for that year.
For a prospective franchisee, this indicates the potential profitability of the restaurant operations before considering other operating expenses. It's important to note that this gross profit is based on the performance of company-owned restaurants and may not be directly indicative of the performance of franchised locations. Factors such as location, management, and local market conditions can significantly impact the financial performance of individual franchise units.
It is essential for potential franchisees to conduct their own due diligence, including reviewing the financial performance of existing franchise locations and developing a comprehensive business plan, to assess the potential profitability of a Golden Krust Caribbean Restaurant franchise. Additionally, understanding the relationship between the company and Golden Krust Caribbean Bakery, Inc., a related party that supplies food and beverage products, is crucial, as these transactions can impact the overall cost of sales and profitability.