What is a 'Designated Supplier' for Golden Krust Caribbean Restaurant, and who can it be?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right to require that all food and beverage items, ingredients, supplies, equipment, furnishings, smallwares, merchandise, promotional items, information technology services, credit card processing services, and other products and services that you purchase for operation of or sale in the Restaurant: (1) meet specifications that we establish; and/or (2) be purchased only from suppliers that we have expressly approved; and/or (3) be purchased only from a manufacturer, wholesaler, distributor, dealer, retailer, or other vendor or source that we designate as the source for particular products or services (a
"Designated Supplier") (which may be us or an affiliate or a buying cooperative that we organize); and/or (4) establish food commissaries and distribution facilities (directly, through our affiliates, and/or our designees), and designate these as Designated Suppliers or approved suppliers. To the extent that we establish specifications, require approval of suppliers, or name Designated Suppliers for particular items, we will provide the requirements to you in writing. If we elect to name ourselves or an affiliate as the Designated Supplier for a particular item, you must purchase all of your requirements of the item from us or the affiliate. You must submit orders in accordance with the terms and procedures we specify. Any conflicting terms and conditions of sale stated in your purchase order will have no effect. In case of shortages, we will have complete discretion to allocate products among Golden Krust Restaurants (and, at our option, other channels of distribution). If shortages or an event of Force Majeure prevent us from being able to supply your Restaurant with its requirements, you are authorized to purchase supplies from other sources for use at the Restaurant until we are again able to meet the Restaurant's requirements, provided that the alternative supplies meet our specifications and that we have given prior written approval. At sole our discretion, you agree that we shall have the right to request that any Designated Supplier or any approved suppliers provide us any reports we request including usage reports for products purchased for the Restaurant.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, a 'Designated Supplier' for Golden Krust Caribbean Restaurant is a supplier that the company designates as the exclusive source for particular products or services. These suppliers are chosen by Golden Krust Caribbean Restaurant to ensure that franchisees meet the brand's specifications and standards.
The document specifies that a Designated Supplier can be Golden Krust Caribbean Restaurant itself, an affiliate of the company, or a buying cooperative organized by Golden Krust Caribbean Restaurant. Additionally, Golden Krust Caribbean Restaurant can establish food commissaries and distribution facilities, either directly, through affiliates, or through designees, and then designate these entities as Designated Suppliers or approved suppliers.
As a franchisee, you may be required to purchase certain items exclusively from these Designated Suppliers. If Golden Krust Caribbean Restaurant or one of its affiliates is named as the Designated Supplier for a specific item, you must purchase all your requirements of that item from them. Golden Krust Caribbean Restaurant also retains the right to request reports, including usage reports, from any Designated Supplier or approved supplier regarding products purchased for the restaurant.