What was the total comprehensive loss for Golden Krust Caribbean Restaurant as of January 1, 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 company experienced a comprehensive loss of $664,096 for the year ending December 31, 2021. This figure represents the net loss combined with other comprehensive income or losses, providing a more complete view of the company's financial performance. For prospective franchisees, understanding this historical financial data is crucial for assessing the potential risks and rewards associated with investing in a Golden Krust Caribbean Restaurant franchise.
The comprehensive loss indicates that Golden Krust Caribbean Restaurant's expenses and losses exceeded its revenues and gains during that period. This loss can be attributed to various factors, such as operating expenses, interest expenses, and other financial obligations. However, it is important to note that the company's financial performance can fluctuate from year to year, and past losses do not necessarily indicate future performance.
Potential franchisees should carefully review the financial statements and consult with financial advisors to gain a deeper understanding of Golden Krust Caribbean Restaurant's financial health and stability. Analyzing trends in revenue, expenses, and profitability over multiple years can provide valuable insights into the company's long-term prospects. Additionally, franchisees should consider the impact of external factors, such as economic conditions and market competition, on the company's financial performance. Understanding these factors will help franchisees make informed decisions and mitigate potential risks associated with their investment.