What is the total note payable for Golden Krust Caribbean Restaurant?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
nts due between the two companies of $75,031 and $4,657,186, respectively. Interest on these balances, charged to interest expense in the statements of operations totaled $7,630 and $44,615 for 2023 and 2022, respectively.
In November 2023, the Company agreed to pay Bakery $5,180,961 through a promissory note. The note has a term of 84 months and will mature on October 31, 2029. For the first 3
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, in November 2023, the company agreed to pay Golden Krust Caribbean Bakery $5,180,961 through a promissory note. This note has an 84-month term, maturing on October 31, 2029.
For the first 36 months, Golden Krust Caribbean Restaurant will pay monthly installments of $87,354, which includes 10.5% interest. After this initial period, the monthly installment will be adjusted based on the remaining balance of the note and prevailing interest rates.
This note represents a significant liability for Golden Krust Caribbean Restaurant. Prospective franchisees should consider this financial obligation when assessing the financial health and stability of the company. Understanding the terms of this note, including the interest rate and repayment schedule, is crucial for evaluating the company's ability to support its franchisees and manage its own financial obligations.