From whom must a Golden Krust Caribbean Restaurant franchisee purchase Proprietary Items?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
teria. If you receive a notice of revocation of approval, you agree to cease purchasing products from the disapproved supplier and, in the case of revocation based on the failure of the supplier's products to meet our standards, you agree to dispose of your remaining inventory of the disapproved supplier's products as we direct.
E. PROPRIETARY ITEMS
You acknowledge and agree that any proprietary items ("Proprietary Items") that we may specify for sale at the Restaurant are manufactured in accordance with our secret blends, standards, and specifications, and are Proprietary Items of ours and/or our affiliates. To maintain the high standards of quality, taste, and uniformity associated with any Proprietary Items sold under the System, you agree to buy Proprietary Items only from a Designated Supplier, and not to offer or sell any items that are similar to (but not the same as) Proprietary Items at or from the Restaurant. In connection with the handling, storage, transport and delivery of any Proprietary Items that you buy from us, our affiliates or designee(s), you agree that any action (or inaction) by a third party (e.g., an independent carrier) in connection with the handling,
storage, transport and delivery of the Proprietary Items shall not be attributable to us, nor constitute negligence on our part.
F. REBATES
We may negotiate purchasing arrangements under which suppliers agree to make services, products, equipment, materials and other goods and services available to Golden Krust Restaurants. Subject to applicable law, we may earn money from the suppliers based on your purchases in the form of rebates, commissions, or other payments. You acknowledge that these payments compensate us for the cost of negotiating and maintaining the purchasing arrangements with the suppliers and that, subject to applicable laws, we have no obligation to remit the funds to you.
G. CATERING, DELIVERY, AND OTHER PROGRAMS
We have the right (but no obligation) to establish Restaurant delivery, catering, fundraising, and/or delivery programs either on our own or in conjunction with one or more outside vendors. You must offer any on-line ordering and delivery options we require. Other programs we establish may be mandatory or optional. You must use any approved technology, equipment (such computer or POS related equipment) or software we require and comply with all other rules and procedures that we specify. You must pay any fees and costs associated with participating in these programs. We may define designated service areas for these programs. We can modify or terminate these programs by notice to the participating restaurants.
**H.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, a franchisee must purchase Proprietary Items only from a Designated Supplier. These Proprietary Items are manufactured according to Golden Krust's secret blends, standards, and specifications and are considered proprietary to Golden Krust and/or its affiliates.
The purpose of this requirement is to maintain the quality, taste, and uniformity associated with the Proprietary Items sold under the Golden Krust Caribbean Restaurant system. Franchisees are prohibited from offering or selling items that are similar to, but not the same as, the Proprietary Items at or from their restaurant.
A Designated Supplier can be Golden Krust, an affiliate, or a buying cooperative organized by Golden Krust. If Golden Krust or an affiliate is named as the Designated Supplier for a particular item, the franchisee must purchase all requirements of that item from them. In situations where there are shortages or events of Force Majeure that prevent Golden Krust from supplying the restaurant's requirements, the franchisee is authorized to purchase supplies from other sources until Golden Krust can meet the restaurant's needs again, provided that the alternative supplies meet Golden Krust's specifications and prior written approval has been given.