What were the selling, general, and administrative expenses for Golden Krust Caribbean Restaurant in 2022?
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 2022 were $5,729,761. This figure is part of the consolidated financial statements which include the accounts of Golden Krust Franchising, Inc., and its wholly-owned subsidiaries. These subsidiaries include Golden Krust Caribbean Restaurants, Inc., GK Blue Hills Boston, Inc., and GK Hartford, Inc.
Selling, general, and administrative expenses generally include costs related to marketing, sales staff salaries, administrative staff salaries, rent, utilities, and other overhead costs. For a prospective franchisee, understanding these expenses is crucial as it provides insight into the operational costs incurred by Golden Krust Caribbean Restaurant. This can help franchisees benchmark their own expenses and assess the efficiency of the franchisor's operations.
It's also important to note that these expenses are part of the overall financial performance of Golden Krust Caribbean Restaurant. Reviewing these expenses in conjunction with revenues and other costs can provide a comprehensive understanding of the company's profitability and financial health. A potential franchisee should analyze these figures over several years to identify trends and assess the financial stability of the franchise system.