What was the total other expense income, net, 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 other expense income, net, for the company in 2021 was $1,100,522. This figure represents the net result of various income and expense items not directly related to the company's primary operations, such as interest income, employee retention credits, related party loan forgiveness, interest expense, and other miscellaneous income or expenses.
For a prospective Golden Krust Caribbean Restaurant franchisee, understanding this figure provides insight into the company's overall financial health and its ability to generate income from sources other than its core franchise and restaurant operations. A significant positive number in this category, as seen in 2021, can indicate successful financial management and opportunistic income generation.
However, it's important to note that such income can be variable and may not be sustainable year-over-year. For example, the presence of one-time items like employee retention credits and related party loan forgiveness significantly boosted the 2021 figure. In 2022, this figure dropped to a negative ($36,271). Therefore, prospective franchisees should consider these figures in the context of the company's broader financial performance and inquire about the specific factors contributing to these fluctuations to assess the potential for similar non-operating income in the future.
Reviewing these figures in Item 21 of the FDD can help potential franchisees understand the financial stability and potential profitability of Golden Krust Caribbean Restaurant.