When are Gross Sales reported for a Golden Krust Caribbean Restaurant franchise?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| Royalty | 5% of Gross Sales2 or | Payable weekly | See Note 2 for the definition of | | | $250 weekly, whichever is greater | by our sweep via EFT | "Gross Sales." Gross Sales are reported on the 3rd business day of the month, but we reserve the right to change this. | | National | 1.5% of Gross Sales | Payable weekly | An additional 1% of annual Gross | | Advertising Fund | | by our sweep via EFT | Sales must be spent on local store marketing initiatives. |
NOTE 2: "Gross Sales" means the aggregate amount of all revenues generated from the sale of all products and services sold and all other income of every kind related to the Restaurant, whether for cash or credit (and regardless of collection in the case of credit), whether from sales on the Premises, by delivery, from catering, or other sales methods (whether the sales method is permitted or not). You may not reduce Gross Sales by the amount of any discounts provided to employees, family members and other businesses that you control. Gross Sales do not include sales taxes or other taxes collected from guests for transmittal to the appropriate taxing authority, proceeds from the sale of gift cards or stored value cards, and guest refunds made in good faith.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, franchisees are required to report Gross Sales on the 3rd business day of each month. This information is crucial because the weekly royalty fee is calculated as 5% of Gross Sales or $250, whichever is greater. These royalty payments are collected weekly via Electronic Funds Transfer (EFT). The FDD also states that Golden Krust Caribbean Restaurant retains the right to change the Gross Sales reporting date.
Gross Sales are defined as the total revenue from all products and services, including cash and credit sales, delivery, catering, and any other sales methods, regardless of whether the method is permitted. Franchisees cannot reduce Gross Sales by the amount of any discounts provided to employees, family members, or other businesses they control. Gross Sales do not include sales taxes, proceeds from gift cards, or guest refunds made in good faith.
It is important for prospective Golden Krust Caribbean Restaurant franchisees to understand the implications of the Gross Sales reporting requirements. Franchisees must maintain accurate records of all sales and income to ensure timely and accurate royalty payments. The potential for Golden Krust Caribbean Restaurant to change the reporting date adds a degree of uncertainty, requiring franchisees to stay informed of any updates to avoid late reporting and potential penalties.