What was the total for Golden Krust Caribbean Restaurant as of December 31, 2022?
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 | (12,6 |
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 consolidated financial statement reveals several revenue streams and expenses for the year ending December 31, 2022. The total franchise revenues amounted to $5,165,522, which includes royalties of $3,566,598, advertising charges of $1,503,874, and franchising fees of $95,050. Additionally, the company-owned restaurant sales contributed $2,896,104. After deducting the cost of sales of $1,226,078, the restaurant gross profit was $1,670,026. The total gross profit for Golden Krust Caribbean Restaurant was $6,835,548.
However, selling, general, and administrative expenses totaled $5,729,761, resulting in an income from operations of $1,105,787. Other expenses, including interest expense of $51,235, led to a total other expense net of $36,271. Consequently, the income before provision for income taxes was $1,069,516. After accounting for recoveries of income taxes of $71,877, the net income for Golden Krust Caribbean Restaurant was $1,141,393 for the year ending December 31, 2022.
For a prospective franchisee, these figures offer insight into the financial performance of Golden Krust Caribbean Restaurant. The breakdown of revenue sources, such as royalties and advertising charges, highlights how the franchise generates income. The expenses, particularly selling, general, and administrative costs, show where the company spends its money. The net income figure indicates the overall profitability of the company for that year. This information is crucial for potential franchisees to assess the financial stability and potential returns of investing in a Golden Krust Caribbean Restaurant franchise.