What was the total gross profit for Golden Krust Caribbean Restaurant in 2022?

According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the total gross profit for the company in 2022 was $6,835,548. This figure represents the revenue remaining after deducting the cost of goods sold from both franchise revenues and sales from company-owned restaurants. It's a key indicator of the company's efficiency in managing its production costs and generating revenue.

For a prospective franchisee, understanding the components of this gross profit is crucial. The total gross profit is derived from several revenue streams: royalties from franchisees, advertising charges, franchising fees, and sales from company-owned restaurants. The cost of sales, which includes the direct costs attributable to the production of goods sold in the company-owned restaurants, is then subtracted from the combined revenue to arrive at the gross profit.

It's important to note that while the total gross profit provides an overview of the company's financial performance, it doesn't reflect the complete picture of profitability. Selling, general, and administrative expenses, as well as other income and expenses such as interest, are further deducted to arrive at the income from operations and net income. Franchisees should consider these additional expenses when evaluating the overall financial health and potential profitability of a Golden Krust Caribbean Restaurant franchise.