What were the selling, general, and administrative expenses 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 | 99,592 |
| Total Franchise Revenues | 5,165,522 | 4,123,205 |
| Company owned restaurant sales | 2,896,104 | 2,976,981 |
| Cost of sales | (1,226,078) | (1,226,592) |
| Restaurant Gross Profit | 1,670,026 | 1,750,389 |
| Total Gross Profit | 6,835,548 | 5,873,594 |
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 5,729,761 | 7,611,396 |
| INCOME (LOSS) FROM OPERATIONS | 1,105,787 | (1,737,802) |
| OTHER INCOME (EXPENSE): | ||
| Interest income | 8,756 | 4,634 |
| Employee retention credit | - | 580,958 |
| Related party loan forgiveness | - | 567,961 |
| Interest expense | (51,235) | (40,408) |
| Other income (expense) | 6,208 | (12,623) |
| Total Other (Expense) Income, net | (36,271) | 1,100,522 |
| INCOME (LOSS) BEFORE PROVISION FOR | ||
| IN |
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 selling, general, and administrative expenses for the company in 2021 were $7,611,396. This figure reflects the costs associated with running the franchise operations, including items such as salaries, rent, utilities, and other overhead costs. These expenses are a key factor in determining the overall profitability of Golden Krust Caribbean Restaurant.
For a prospective franchisee, understanding these expenses is crucial because they provide insight into the financial health and stability of the franchisor. High selling, general, and administrative expenses could indicate inefficiencies or areas where costs might be reduced. Conversely, relatively lower expenses might suggest effective management and resource allocation.
It's important to note that these expenses are for the franchisor's operations and not the individual franchise units. Franchisees will have their own set of operating expenses to manage, which are separate from these figures. Reviewing these figures in conjunction with other financial data in the FDD, such as revenue and net income, can give potential franchisees a more complete picture of the financial performance of Golden Krust Caribbean Restaurant.