What were the royalties revenues for Golden Krust Caribbean Restaurant in 2023?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
57,643 |
GOLDEN KRUST FRANCHISING, INC. CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | |
|---|---|---|
| REVENUES | ||
| Royalties | $ 4,094,692 | $ 3,693,105 |
| Advertising Charges | 1,718,952 | 1,503,874 |
| Franchising Fees | 122,508 | 95,050 |
| Total Franchise Revenues | 5,936,152 | 5,292,029 |
| Company Owned Restaurant Sales | 2,631,341 | 2,896,104 |
| Cost of Sales | (1,071,371) | (1,226,078) |
| Restaurant Gross Profit | 1,559,970 | 1,670,026 |
| GROSS PROFIT | 7,496,122 | 6,962,055 |
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 7,038,995 | 5,856,268 |
| INCOME FROM OPERATIONS | 457,127 | 1,105,787 |
| OTHER INCOME (EXPENSE) | ||
| Interest Income | 188 | 8,756 |
| Interest Expense | (122,609) | (38,455) |
| Other Expense | (176,975) | (6,572) |
| Other Expense, Net | (299,396) | (36,271) |
| INCOME BEFORE RECOVERIES OF (PROVISION FOR) |
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 royalty revenues for the year 2023 were $4,094,692. This represents the income Golden Krust Caribbean Restaurant Franchising, Inc. received from its franchisees based on a percentage of their sales. Royalties are a primary revenue stream for franchisors, as franchisees are obligated to pay ongoing royalties as part of their franchise agreement.
For a prospective franchisee, this figure highlights the financial stability of Golden Krust Caribbean Restaurant as a franchise system. The royalty revenue indicates the overall sales performance and health of the franchise network. A higher royalty revenue generally suggests a larger and more successful franchisee base.
In 2022, the royalty revenues were $3,693,105, indicating an increase in royalty revenues from 2022 to 2023. This increase could be due to factors such as the opening of new franchise locations, increased sales at existing locations, or a combination of both. Monitoring the trend in royalty revenues can provide insights into the growth and stability of the Golden Krust Caribbean Restaurant franchise system.