Is a Golden Krust Caribbean Restaurant franchisee required to pay all monetary obligations to renew?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
ted agreements. You should read these provisions in the agreements attached to this Disclosure Document.**
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| (a) Length of the | Section I.D. | 10 years |
| Franchise Term | ||
| (b) Renewal or Extension | Section I.E. | One (1) additional 10 year term. |
| of the term | ||
| (c) Requirements for Franchisee to renew or extend | Section I.E. | Not in default of any agreement with us and paid all monetary obligations. Right to maintain possession of premises or secure substitute premises. Remodel or renovate to our satisfaction. Give timely notice. Sign general release (Exhibit H includes the current form). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 27–29)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, a franchisee must have paid all monetary obligations to be eligible for renewal. Specifically, to renew the franchise for an additional 10-year term, the franchisee must not be in default of any agreement with Golden Krust Caribbean Restaurant and must have paid all monetary obligations.
In addition to paying all monetary obligations, the franchisee must also maintain the right to possess the premises or secure a substitute premises. The franchisee will also be required to remodel or renovate the premises to Golden Krust Caribbean Restaurant's satisfaction.
Furthermore, the franchisee must provide timely notice of their intent to renew, sign a general release, and execute the then-current franchise agreement, which may contain materially different terms and conditions from the original agreement. The franchisee will also be required to pay a renewal fee at the time of renewal.