What criteria might Golden Krust Caribbean Restaurant use to condition the approval of a supplier?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
mpose limits on the number of approved items and suppliers. Approval of a supplier may be conditioned on criteria relating to product quality, frequency of delivery, standards of service and concentration of purchases with one or more suppliers in order to obtain better prices and service and may be temporary, pending our further evaluation of the supplier.
Computer Hardware and Software
Prior to opening, you are required to purchase the required Point Of Sale System and equipment required for the Golden Krust App. We must maintain independent access to the information or data generated by your Point Of Sale System. We may require that you update or replace this point of sale system.
Required Purchase Percentage of Revenue
We estimate that approximately 75% to 90% of your total purchases and leases in establishing and in operating a Golden Krust Restaurant will be subject to at least one of the restrictions described in this item.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–16)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the approval of a supplier may be based on several criteria. These include product quality, frequency of delivery, standards of service, and the concentration of purchases with specific suppliers. These conditions are put in place to potentially obtain better prices and service for the Golden Krust Caribbean Restaurant franchise system. The approval may also be temporary, pending further evaluation of the supplier by Golden Krust Caribbean Restaurant.
For a prospective franchisee, this means that if they wish to use a supplier not already approved by Golden Krust Caribbean Restaurant, they must submit sufficient information, specifications, and samples for evaluation. Golden Krust Caribbean Restaurant may charge a reasonable fee to cover the costs of this determination. The franchisee will be notified of the decision within sixty days. It is important to note that Golden Krust Caribbean Restaurant may establish procedures for submitting requests and may impose limits on the number of approved items and suppliers.
This system ensures that all suppliers meet the standards required by Golden Krust Caribbean Restaurant, maintaining consistency and quality across all franchise locations. While this might limit a franchisee's choice of suppliers, it also aims to provide them with better pricing and service through concentrated purchasing power. Franchisees should be aware that these standards and approved supplier lists will be communicated in the Brand Standards Manual or other communications from Golden Krust Caribbean Restaurant.