What were the total franchise revenues for Golden Krust Caribbean Restaurant in 2023?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
57,643 |
GOLDEN KRUST FRANCHISING, INC. CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | |
|---|---|---|
| REVENUES | ||
| Royalties | $ 4,094,692 | $ 3,693,105 |
| Advertising Charges | 1,718,952 | 1,503,874 |
| Franchising Fees | 122,508 | 95,050 |
| Total Franchise Revenues | 5,936,152 | 5,292,029 |
| Company Owned Restaurant Sales | 2,631,341 | 2,896,104 |
| Cost of Sales | (1,071,371) | (1,226,078) |
| Restaurant Gross Profit | 1,559,970 | 1,670,026 |
| GROSS PROFIT | 7,496,122 | 6,962,055 |
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 7,038,995 | 5,856,268 |
| INCOME FROM OPERATIONS | 457,127 | 1,105,787 |
| OTHER INCOME (EXPENSE) | ||
| Interest Income | 188 | 8,756 |
| Interest Expense | (122,609) | (38,455) |
| Other Expense | (176,975) | (6,572) |
| Other Expense, Net | (299,396) | (36,271) |
| INCOME BEFORE RECOVERIES OF (PROVISION FOR) |
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 franchise revenues for 2023 were $5,936,152. This figure is comprised of several revenue streams including royalties, advertising charges, and franchising fees. In comparison, the total franchise revenues in 2022 were $5,292,029. This shows an increase in total franchise revenues from 2022 to 2023.
For a prospective franchisee, this information is useful in understanding the revenue streams of Golden Krust Caribbean Restaurant. It highlights how the company generates income through its franchise operations, which includes royalties collected from franchisees, advertising charges, and initial franchising fees paid by new franchisees. The increase in revenue from 2022 to 2023 may indicate a growing franchise system or improved performance of existing franchises.
It's important to note that while franchise revenues increased, the company also has revenue from company-owned restaurant sales, which amounted to $2,631,341 in 2023, a decrease from $2,896,104 in 2022. The overall gross profit for Golden Krust Caribbean Restaurant was $7,496,122 in 2023, compared to $6,962,055 in 2022. Prospective franchisees should consider these figures in conjunction with the expenses and other financial data provided in the FDD to assess the overall financial health and potential profitability of the franchise system.
Furthermore, the FDD includes additional financial statements and notes that provide a more detailed breakdown of revenues, expenses, assets, and liabilities. Reviewing these statements in their entirety is crucial for any potential franchisee to gain a comprehensive understanding of Golden Krust Caribbean Restaurant's financial performance and stability.