What factors does Golden Krust Caribbean Restaurant consider when approving a restaurant location?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
The franchise is granted to you for a specific location only that first must be approved by us. We will consider multiple factors in approving a restaurant location. We do not grant exclusive territories. You are not granted options, rights of first refusal or similar rights to acquire additional franchises within a territory or contiguous territories. You may not operate the Restaurant at any other site without our prior written consent. If we consent to the Restaurant's relocation, we may charge you for the reasonable costs and expenses we incur in connection with the relocation. There are no restrictions as to where you solicit or accept orders. You may not, without prior approval by us, use other channels of distribution, such as the internet, to make sales outside your territory.
Source: Item 12 — TERRITORY (FDD page 23)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the franchisor will consider multiple factors when approving a restaurant location. However, the document does not specify what those factors are. The franchisee is responsible for locating a site for the premises, and site selection is subject to the franchisor's approval.
The franchisor's recommendation or approval of a location does not constitute a warranty of any kind as to the suitability of the premises for a Golden Krust Caribbean Restaurant. The franchisor states that their approval only indicates that they believe the premises falls within acceptable criteria for sites and premises. The franchisor also states that the application of criteria that have appeared effective with respect to other sites and premises may not accurately reflect the potential for all sites and premises. Demographic and other factors could change after the franchisor's approval of a site, thereby altering the potential of a site and premises.
The franchisor will approve or disapprove a location proposed by the franchisee within 30 days after receiving the complete site report and other requested materials. If the franchisee and franchisor cannot agree upon a site within one year of signing the Franchise Agreement, the Franchise Agreement will be terminated, and the franchisor will retain the initial franchise fee. A prospective franchisee should ask the franchisor for a detailed list of the factors considered during site selection.