Must a Golden Krust Caribbean Restaurant franchisee's location be approved by the franchisor?
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.
Source: Item 12 — TERRITORY (FDD page 23)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the specific location for a franchisee's restaurant must be approved by Golden Krust Franchising, Inc. The document states that the franchise is granted for a specific location only, and this location must first receive approval from the franchisor.
Golden Krust Caribbean Restaurant considers multiple factors when evaluating and approving a restaurant location. However, the franchisor's approval does not constitute a representation or warranty regarding the suitability of the location for a Golden Krust Caribbean Restaurant or any other purpose. The responsibility for locating a suitable site rests with the franchisee.
This means that while Golden Krust Caribbean Restaurant retains control over site selection, the franchisee bears the ultimate risk and responsibility for choosing a viable location. The franchisee should conduct thorough due diligence to ensure the site meets their needs and has the potential for success. Franchisees are also not allowed to operate the Restaurant at any other site without prior written consent from Golden Krust Caribbean Restaurant, and relocation of the restaurant is subject to the franchisor's approval and associated costs.