factual

What information about the franchisee's organization can Golden Krust Caribbean Restaurant request?

Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDD

Answer from 2024 FDD Document

If you are at any time a corporation, limited liability company or partnership, you agree and represent that:

  • (1) You will have the authority to execute, deliver and perform your obligations under this Agreement and are duly organized or formed and validly existing in good standing under the laws of the state of your incorporation or formation;
  • (2) Your organizational documents or partnership agreement will recite that the issuance and transfer of any ownership interests in you are restricted by the terms of this Agreement, and all certificates and other documents representing ownership interests in you will bear a legend referring to the restrictions of this Agreement;
  • (3) Exhibit A to this Agreement will completely and accurately describe all of your owners and their interests in you; and
  • (4) Each of your owners at any time during the term of this Agreement will execute an agreement in the form that we prescribe undertaking to be bound jointly and severally by all provisions of this Agreement and any ancillary agreements between you and us that bind you. You and your owners agree to execute and deliver to us such revised Exhibits A as may be necessary to reflect any changes in the information contained therein and to furnish such other information about your organization or formation as we may request. Your owners and each of their spouses, if applicable, shall jointly and severally personally guarantee your payment and performance under this Agreement and personally bind themselves to the terms of this Agreement pursuant to the attached Guaranty and Assumption of Obligations (Exhibit C to this Agreement).

Source: Item 22 — CONTRACTS (FDD page 35)

What This Means (2024 FDD)

According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, or partnership, Golden Krust Caribbean Restaurant can request certain information about the franchisee's organization. Specifically, Golden Krust Caribbean Restaurant may request franchisees to furnish other information about their organization or formation.

Golden Krust Caribbean Restaurant requires that the franchisee has the authority to fulfill their obligations under the Franchise Agreement and be in good standing under the laws of their state. The organizational documents must state that ownership transfers are restricted by the terms of the Franchise Agreement, and ownership documents must reference these restrictions.

Exhibit A to the Franchise Agreement must accurately describe all owners and their interests in the company. Additionally, all owners must agree to be bound by the Franchise Agreement and any related agreements. Owners and their spouses must also personally guarantee the franchisee's payment and performance under the agreement. Franchisees and their owners must provide revised Exhibits A to reflect any changes in the provided information.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.