What was the total amount of company-owned restaurant sales 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 total sales for company-owned restaurants in 2021 was $2,976,981. This figure is part of the consolidated financial statements which include the revenues, royalties, advertising charges, and franchising fees. The cost of sales for the company-owned restaurants was $1,226,592, resulting in a restaurant gross profit of $1,750,389.
It's important to note that these figures reflect the performance of the specific company-owned restaurants and may not be representative of franchised locations. Prospective franchisees should consider this data as part of a broader due diligence process, comparing it with the performance representations (if any) provided in Item 19 of the FDD and their own market research.
The financial statement also includes other income and expenses, such as interest income, employee retention credit, related party loan forgiveness, and interest expense, which impact the overall net income or loss. In 2021, Golden Krust Caribbean Restaurant had a net loss of $659,030. Understanding these factors is crucial for assessing the financial health and stability of the franchisor.
Overall, the company-owned restaurant sales provide a glimpse into one aspect of Golden Krust Caribbean Restaurant's financial performance. However, potential franchisees should also evaluate other factors, such as franchise fees, royalties, and advertising costs, to gain a comprehensive understanding of the investment required and the potential returns.