What costs can Golden Krust Caribbean Restaurant charge a franchisee in connection with the relocation of the restaurant?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
of one of your owners, by will, declaration of or transfer in trust or under the laws of intestate succession; or
- (f) pledge of this Agreement (to someone other than us) or of an ownership interest in you as security, foreclosure upon the Restaurant or your transfer, surrender or loss of possession, control or management of the Restaurant.
C. CONDITIONS FOR APPROVAL OF TRANSFER
Our approval for a transfer shall be conditioned upon the following:
(1) you be then in full compliance with the terms of this and any other agreement between us including but not limited to complying with all current system standards and you or the transferee paying
to us a transfer fee of $10,000.00. In addition, you and the transferee must sign all agreements we require (which may include an assignment agreement or a new franchise agreement (or the remainder of the term of this Agreement)).
- (2) the transferee and its owners meeting our then-current criteria for franchisees, having adequate financial resources, aptitude, experience and otherwise being capable of operating a Golden Krust Restaurant.
- (3) you submitting all proposed advertisements for the sale or other disposition of the franchise to us for written approval, our approval shall not be unreasonably withheld;
- (4) you paying all amounts owed to us and our affiliates and all other creditors of your Golden Krust Restaurant;
- (5) you executing a general release of us, our affiliates and officers, directors and employees; and
- (6) the transferee purchasing all of your assets used in the Golden Krust Restaurant, assuming all of your existing business liabilities including liabilities owed to us and assuming your le
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the FDD does not specify any costs that Golden Krust Caribbean Restaurant can charge a franchisee specifically for the relocation of a restaurant. The document does outline costs associated with site selection, lease of premises, and development of the restaurant, but these are in the context of establishing the initial location.
However, the Franchise Agreement does address costs related to transfers, which could be relevant if relocation involves transferring the franchise to a new location. In such cases, Golden Krust Caribbean Restaurant may charge a transfer fee of $10,000. Additionally, the franchisee or transferee may need to update, remodel, and refurbish the restaurant to reflect the current design standards.
Since the FDD does not explicitly detail relocation costs, it is important for a prospective Golden Krust Caribbean Restaurant franchisee to seek clarification from the franchisor regarding any potential fees or expenses associated with relocating an existing restaurant. This inquiry should cover all aspects of relocation, including site approval, remodeling, and any other associated costs to ensure full transparency and avoid unexpected financial burdens.