What is the total note payable amount for Golden Krust Caribbean Restaurant as of the provided table?
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 the 2024 Franchise Disclosure Document, Golden Krust Caribbean Restaurant had a promissory note agreement with Golden Krust Caribbean Bakery, Inc. In November 2023, Golden Krust Caribbean Restaurant agreed to pay the Bakery $5,180,961.
The note has an 84-month term, maturing on October 31, 2029. For the first 36 months, Golden Krust Caribbean Restaurant is to pay monthly installments of $87,354, which includes 10.5% interest. After the initial 36 months, the monthly installment will be adjusted based on the remaining balance and prevailing interest rates.
This note payable represents a significant liability for Golden Krust Caribbean Restaurant. Prospective franchisees should consider how this debt might affect the financial stability of the company and its ability to support franchisees. Understanding the terms of this note, including the interest rate and repayment schedule, is crucial for assessing the financial health of the franchise.