Does Golden Krust Caribbean Restaurant have any significant financing components for restaurant sales?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
nts due between the two companies of $75,031 and $4,657,186, respectively. Interest on these balances, charged to interest expense in the statements of operations totaled $7,630 and $44,615 for 2023 and 2022, respectively.
In November 2023, the Company agreed to pay Bakery $5,180,961 through a promissory note. The note has a term of 84 months and will mature on October 31, 2029. For the first 36 months, the Company will pay a monthly installment of $87,35
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, the company itself does not offer financing for restaurant sales. However, the document mentions a promissory note agreement between Golden Krust Franchising, Inc. and Golden Krust Caribbean Bakery, Inc., a related party.
Specifically, in November 2023, Golden Krust Franchising, Inc. agreed to pay Golden Krust Caribbean Bakery, Inc. $5,180,961 through a promissory note. This note has an 84-month term, maturing on October 31, 2029. For the first 36 months, Golden Krust Franchising, Inc. will pay monthly installments of $87,354, which includes 10.5% interest. After this initial period, the monthly installment will be adjusted based on the remaining balance and prevailing interest rates.
While this note is between related parties and not directly offered to franchisees, it demonstrates that Golden Krust Caribbean Restaurant does engage in financing arrangements. A prospective franchisee should inquire with Golden Krust Caribbean Restaurant about potential financing options available to new franchisees, even if they are not explicitly detailed in this section of the FDD. It would be prudent to ask about preferred lenders or any relationships Golden Krust Caribbean Restaurant has with financial institutions that could benefit a new franchisee seeking funding.