What was the total balance for Golden Krust Caribbean Restaurant as of January 1, 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)
The 2024 Franchise Disclosure Document for Golden Krust Caribbean Restaurant does not explicitly state the total balance as of January 1, 2022. However, it does provide information regarding amounts due between Golden Krust Franchising, Inc. and Golden Krust Caribbean Bakery, Inc.
Specifically, at December 31, 2021, there was $3,691,201 due between the two companies. Additionally, there were balances due from related parties of $78,040 and due to related parties of $274,191 as of December 31, 2021. These amounts primarily consist of interest-bearing advances for working capital, lease payments, and allocation of operating expenses.
To determine the total balance as of January 1, 2022, a prospective franchisee should request this specific information from Golden Krust Caribbean Restaurant. Understanding the financial relationships and balances between related entities is crucial for assessing the financial health and stability of the franchise system.