From what account is the advertising fee for a Golden Krust Caribbean Restaurant transferred?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
You acknowledge that extensive local marketing and advertising efforts are necessary to the success of your Restaurant. You agree to expend 1% of the annual gross revenues from the operation of your Restaurant on local marketing, including but not limited to, digital marketing. You agree to advertise and promote your restaurant only in a manner that will reflect favorably on Golden Krust and its good name and reputation. You further agree to submit to Golden Krust for its prior approval all proposed advertising to be utilized by you. If you do not receive written disapproval within fifteen (15) days after we receive the materials, we will be deemed to have given the required approval. You may not use any advertising, promotional materials or web-based advertising that we have disapproved.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Golden Krust Caribbean Restaurant franchisees are required to allocate 1% of their restaurant's annual gross revenues towards local marketing efforts. This local advertising expenditure is intended to promote the franchisee's specific restaurant and must align positively with the Golden Krust brand's reputation.
Prospective franchisees need to understand that all advertising materials they plan to use must first be submitted to Golden Krust Caribbean Restaurant for approval. If the franchisee does not receive any written disapproval within 15 days of submitting the advertising materials, the franchisor's approval is assumed. However, franchisees are prohibited from using any advertising or promotional content that Golden Krust Caribbean Restaurant has explicitly disapproved.
The FDD excerpt does not specify the exact account from which these advertising fees should be transferred. For clarification, a prospective franchisee should inquire with Golden Krust Caribbean Restaurant about the specific procedures and recommended accounts for managing and transferring the funds allocated for local advertising.