Golden Krust
Golden Krust Caribbean Restaurant offers Jamaican patties, jerk chicken, and other Caribbean cuisine in a traditional restaurant setting. Known for authentic flavors, this franchise is part of the quick-service restaurant industry.
About Golden Krust
Golden Krust Caribbean Bakery, Inc. is a Caribbean fast casual restaurant operator and manufacturer of Caribbean cuisine including Jamaican food, Jamaican patty, and other baked goods.
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Golden Krust franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment necessary to begin operations of a Traditional Golden Krust Caribbean Restaurant ranges from $212,600 to $775,900. [p.1]
What is the initial franchise fee?
The initial franchise fee is $40,000, which must be paid upon signing the Franchise Agreement and is nonrefundable [p.11, p.87]. This fee is allocated to each individual restaurant and recognized over the term of the respective franchise agreement from the date of the restaurant opening [p.50, p.70].
What are the ongoing royalty and advertising fees?
The franchisee pays a weekly advertising fee equal to 1.5% of the Gross Sales of the Restaurant, which is segregated by the company into an Advertising Fund [p.96]. Additionally, there is a royalty fee, though the exact percentage isn't specified in these excerpts; it's recognized over the term of the franchise agreement based on royalties earned each period as underlying sales occur [p.50-71].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement term is ten (10) years, commencing on the date of signing and expiring ten (10) years from such date [p.85]. You may renew the franchise for one (1) additional ten (10) year term under the conditions specified in the agreement [p.84].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer your franchise, but it requires approval from the franchisor. The franchisor must approve the material terms and conditions of such a transfer and determine that the price and terms will not adversely affect the transferee's operation of the franchise [p.99]. Additionally, both you and the transferee must sign all required agreements, which may include an assignment agreement or a new franchise agreement (or the remainder of the term of this Agreement) [p.99].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.120].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or competitive brands controlled by them [p.23].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training at their facility or a designated center, including classroom and in-store sessions. Ongoing support includes refresher training as needed, with franchisees responsible for travel and lodging expenses. The Brand Standards Manual is also updated and used as a guide for training [p.23].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD indicates that the information is based on reports from 106 fully-reporting franchised Golden Krust Caribbean Bakery and Grill Restaurants in the United States for the 2023 Fiscal Year [p.29]. However, this number does not include closed or terminated outlets, as no franchised restaurants that opened or closed during the 2023 Fiscal Year are included in the information provided [p.29]. Therefore, based on the given excerpts, the specific number of closed or terminated outlets is not specified.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it, and this information must be included in the disclosure document [p.29]. However, other than the financial performance representation specified in Item 19, the franchisor does not make any financial performance representations either orally or in writing [p.31].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering for sale all products designated as required items by the franchisor [p.92], and you may also offer optional items approved in writing [p.23]. You must buy Proprietary Items only from a Designated Supplier, and not from other sources even if similar products are available [p.93]. This isn't specified in the excerpts regarding where to buy general supplies, but you may be required to purchase certain items from designated suppliers due to supplier restrictions mentioned on page 3.