How is the advertising fee for a Golden Krust Caribbean Restaurant paid?
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 engage in local marketing efforts. Franchisees must spend 1% of their restaurant's annual gross revenues on local marketing, which can include digital marketing initiatives.
All advertising and promotional materials that a franchisee intends to use must first be submitted to Golden Krust Caribbean Restaurant for approval. If the franchisee does not receive written disapproval within 15 days of submitting the materials, the advertising is considered approved. Franchisees are prohibited from using any advertising or promotional materials that Golden Krust Caribbean Restaurant has disapproved.
This policy ensures that all local advertising aligns with the brand's image and reputation, while also requiring franchisees to invest in marketing their specific location. The approval process gives Golden Krust Caribbean Restaurant control over brand messaging, but also sets a timeframe for review, which can help franchisees plan their marketing efforts effectively.