Besides the Franchise Agreement, are there other binding terms for Golden Krust Caribbean Restaurant?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
olden Krust Caribbean Bakery and Grill Franchised Restaurants/Golden Krust Caribbean Restaurant (Traditional)
| PROVISION | SECTION IN FRANCHISE | SUMMARY | |
|---|---|---|---|
| AGREEMENT | |||
| (q) Non-competition | Section VII | No controlling ownership interest in, or | |
| covenants during the | perform services for, competitive business | ||
| term of the franchise | anywhere. | ||
| (r) Non-competition covenants after the franchise is terminated or expires | Section XVI.D. | No interest in competing business for 2 years at, or within 10 miles of premises of Restaurant or within 5 miles of any other Golden Krust Restaurant that is in operation or under construction (same restrictions apply after assignment) | |
| (s) Modification of the agreement | Section XVIII.G. | No modifications generally but Brand Standards Manual and System Standards are subject to change. | |
| (t) Integration/Merger clause | Section XVIII.H. | Only the terms of the Franchise Agreement (including the Brand Standards Manual) are binding. Any other promises may not be enforceable. Nothing in the Franchise Agreement or in any related agreement is intended to disclaim our representations made in the Franchise Disclosure Document | |
| (u) Dispute resolution by | Section XVIII.E. | Except for certain claims, all disputes must be | |
| arbitration or | arbitrated in White Plains, New York (subject | ||
| mediation | to state law) | ||
| (v) Choice of forum | Section XVIII.F. | Arbitration shall be in New York (subject to state law). | |
| (w) Choice of law | Section XVIII.F. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 29–32)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, the terms of the Franchise Agreement, including the Brand Standards Manual, are binding for Golden Krust Caribbean Restaurant franchisees. While modifications to the agreement are generally not allowed, the Brand Standards Manual and System Standards are subject to change, indicating that franchisees must adhere to updates made to these standards throughout the franchise term.
The Franchise Agreement for Golden Krust Caribbean Restaurant also contains non-competition covenants that apply both during the term of the franchise and after termination or expiration. During the franchise term, franchisees cannot have a controlling ownership interest in or perform services for a competitive business anywhere. After the franchise is terminated or expires, franchisees are restricted from having an interest in a competing business for two years at or within 10 miles of the restaurant's premises, or within 5 miles of any other Golden Krust Caribbean Restaurant that is in operation or under construction. These restrictions also apply after assignment of the franchise.
Any disputes related to the Golden Krust Caribbean Restaurant franchise, except for certain claims, must be resolved through arbitration in White Plains, New York, subject to state law. New York law governs the Franchise Agreement, also subject to state law. The Franchise Agreement also states that nothing in the Franchise Agreement or in any related agreement is intended to disclaim the representations made in the Franchise Disclosure Document.