What criteria must a transferee meet to operate a Golden Krust Caribbean Restaurant franchise?
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 lease.
- (7) you or your proposed transferee agreeing to update, remodel and refurbish your Restaurant to reflect the then current design and trade dress of Golden Krust Restaurants.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, a transfer of a franchise is contingent on several factors related to both the current franchisee and the prospective transferee. The current franchisee must be in full compliance with all existing agreements, including adherence to system standards. They must also ensure that all outstanding payments to Golden Krust Caribbean Restaurant and its affiliates, as well as other creditors, are settled. Additionally, the current franchisee needs to provide a general release to Golden Krust Caribbean Restaurant, its affiliates, officers, directors, and employees. They must also submit any proposed advertisements for the sale to Golden Krust for approval.
For the transferee to be approved, they must meet the then-current criteria for new Golden Krust Caribbean Restaurant franchisees. This includes demonstrating adequate financial resources, aptitude, and experience to successfully operate the restaurant. The transferee is also required to purchase all of the current franchisee's assets used in the Golden Krust Caribbean Restaurant, assume all existing business liabilities (including those owed to Golden Krust Caribbean Restaurant), and take over the existing lease.
Furthermore, either the current franchisee or the proposed transferee must agree to update, remodel, and refurbish the restaurant to align with the current design and trade dress standards of Golden Krust Caribbean Restaurant. Golden Krust Caribbean Restaurant also needs to approve the material terms and conditions of the transfer, ensuring that the price and terms will not negatively impact the transferee's operation of the franchise. A transfer fee of $10,000.00 is due to Golden Krust Caribbean Restaurant. Both parties must sign all required agreements, which may include an assignment agreement or a new franchise agreement. Golden Krust Caribbean Restaurant retains sole discretion in approving any and all transfers.