Does Golden Krust Caribbean Restaurant furnish advertising materials to franchisees periodically?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
In our discretion, periodically furnish you with samples of advertising, marketing and promotional formats and materials. We will review and approve proposed local advertising you intend to use. We will administer the Advertising Fund. (Franchise Agreement – Sections IV.B., IX and X)
We will direct all programs financed by the Advertising Fund, with sole discretion over the creative concepts, materials and endorsements used and the geographic, market and media placement and allocation of the programs. The Advertising Fund may be used to pay the costs of preparing and producing video, audio and written advertising materials; administering regional and multi-regional advertising programs, including, without limitation, social media and electronic media 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. 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.
You will also be required to expend 1% of the annual Gross Sales from the operation of your Restaurant on local marketing, including but not limited to digital marketing.
All advertising, promotion and marketing must be completely clear and factual and not misleading and conform to the highest standards of ethical marketing and the promotion policies which we require from time to time. You may prepare your own advertising materials, however, samples of all advertising, promotional and marketing materials that we have not prepared or previously approved must be submitted for approval before you use them. If you do not receive written disapproval within fifteen (15) days after we receive the materials, we will be deemed to have given the required approval. You may not use any advertising, promotional materials or web-based advertising that we have disapproved.
Except as disclosed above, there are no other adverting funds or programs that you must participate in. We have no obligation to spend any amount on advertising in your area or territory.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, OPERATIONS MANUAL, WEBSITE, AND TRAINING (FDD pages 18–23)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the company may periodically furnish franchisees with advertising materials. Specifically, Golden Krust Caribbean Restaurant may provide samples of advertising, marketing, and promotional formats and materials at its discretion. The Advertising Fund will also periodically furnish these materials at no cost. However, franchisees may have to pay the direct costs of producing multiple copies, including shipping, handling, and storage charges.
Golden Krust Caribbean Restaurant directs all programs financed by the Advertising Fund and has sole discretion over the creative concepts, materials, endorsements, and placement of advertising programs. The Advertising Fund can be used to cover various advertising costs, such as video, audio, and written materials, social media and electronic media advertising, direct mail, and employing advertising agencies.
While Golden Krust Caribbean Restaurant may provide advertising materials, franchisees are also required to spend 1% of their annual Gross Sales on local marketing, including digital marketing. Any advertising materials prepared by the franchisee must be submitted for approval, and Golden Krust Caribbean Restaurant has 15 days to provide written disapproval. Franchisees cannot use any disapproved materials. Golden Krust Caribbean Restaurant has no obligation to spend any amount on advertising in the franchisee's area or territory.