Will Golden Krust Caribbean Restaurant franchisees receive samples of advertising materials?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
The advertising fund will be spent only for the preparation, purchase and placement of advertising, including but not limited to preparing and producing video, audio and written advertising materials, administering regional and multi-regional advertising, purchasing direct mail and other media advertising and employing advertising promotion and marketing agencies to provide assistance and supporting public relations, market research and other advertising, promotion and marketing activities, except for such reasonable salaries, administrative costs, travel expenses and overhead as we incur in administering the fund. The Advertising Fund periodically will furnish you with samples of advertising, marketing and promotional formats and materials at no cost. Multiple copies of such materials will be furnished to you at our direct cost of producing them, plus any related shipping, handling and storage charges. The fund is intended to further recognition and acceptance of the Golden Krust name, marks and products, and we reserve the sole discretion in administering the fund as well as for the creation, design, development, selection and placement of advertising.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, the Advertising Fund will periodically provide franchisees with samples of advertising, marketing, and promotional formats and materials at no cost. These materials may include video, audio, and written advertising. If a franchisee requires multiple copies of these materials, they will be furnished at Golden Krust Caribbean Restaurant's direct cost of producing them, plus any related shipping, handling, and storage charges.
This indicates that Golden Krust Caribbean Restaurant franchisees will have access to advertising materials created by the franchisor to support their local marketing efforts. The franchisee can use these samples as a base for their advertising campaigns.
However, franchisees are required to expend 1% of their annual gross revenues on local marketing, including digital marketing. All proposed advertising must be submitted to Golden Krust Caribbean Restaurant for prior approval, and the franchisor has 15 days to provide written disapproval. This ensures that all advertising reflects favorably on the Golden Krust Caribbean Restaurant brand and maintains its reputation.