What was the total balance for Golden Krust Caribbean Restaurant as of December 31, 2022?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
al, and administrative expenses on the consolidated statements of operations, were $145,391 and $177,151 during 2022 and 2021, respectively.
During 2022 and 2021, Bakery sales to the Company-owned restaurants aggregated approximately $922,000 and $1,145,000, respectively.
The Company also entered into an agreement with Bakery, whereby any related party receivables or payables will accrue interest at a rate of 1% per annum on any balances between the two companies. At December 31, 2022 and 2021 there were amounts due between the two companies of $4,657,186 and $3,691,201, respectively. Interest on these balances, charged to interest expense in the statements of operations totaled $44,614 and $40,375 for 2022 and 2021, respectively.
The Company also has balances due from (to) related parties, through common ownership/management. These related parties consist mainly of real estate holdings that are not consolidated in these financial statements. A total of $913,125 and $274,191 are due to, and $77,718 and $78,040 are due from these related parties as of December 31, 2022 and 2021, respectively. These amounts primarily consist of interest-bearing advances for working capital, lease pay
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Golden Krust Caribbean Restaurant had amounts due between the company and Golden Krust Caribbean Bakery, Inc. of $4,657,186 as of December 31, 2022. These amounts are subject to interest at a rate of 1% per annum. Interest charged on these balances totaled $44,614 for 2022.
Additionally, Golden Krust Caribbean Restaurant had balances due from related parties totaling $913,125 and balances due to related parties totaling $77,718 as of December 31, 2022. These related parties primarily consist of real estate holdings. These amounts consist of interest-bearing advances for working capital, lease payments, and allocation of operating expenses.
Since there are no scheduled repayment requirements, the receivable and payable balances are classified as noncurrent assets and long-term liabilities on the balance sheets. No interest is charged on these liabilities. These related party transactions can significantly impact the financial position of Golden Krust Caribbean Restaurant, and it's important for potential franchisees to understand the nature and extent of these relationships.