When is the advertising fee for a Golden Krust Caribbean Restaurant due?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
ces regarding revenue recognition, revenue reporting, and the inclusion in or exclusion of certain revenue from "Gross Sales" as circumstances, business practices, and technology change. A current list of exclusions can be found in the Brand Standards Manual.
D. INTEREST ON LATE PAYMENTS
All amounts which you owe us will bear interest after their due date at the rate of one and one-half percent (1.5%) per month or the highest contract rate of interest permitted by law, whichever is less. You acknowledge that this Section does not constitute our agreement to accept any payments after they are due or our commitment to extend credit to, or otherwise finance your operation of, the Restaurant.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document does not explicitly state when the advertising fee for a Golden Krust Caribbean Restaurant is due. However, it does state that all amounts owed to Golden Krust Franchising, Inc. will bear interest after their due date at a rate of 1.5% per month or the highest contract rate of interest permitted by law, whichever is less. This implies that there is a defined due date for advertising fees and other payments.
Additionally, the franchisee is required to expend 1% of the annual gross revenues from the operation of their restaurant on local marketing. The FDD states that the franchisee must furnish financial information to the franchisor on forms that the franchisor prescribes from time to time. These forms likely include details on gross revenues and marketing expenditures, which could be used to calculate and track local advertising spending.
To gain clarity on the specific due dates for advertising fees, a prospective franchisee should directly ask Golden Krust Caribbean Restaurant for clarification on when these fees are due and how they should be paid. Understanding the payment schedule is crucial for managing cash flow and ensuring compliance with the franchise agreement.