When is the initial franchise fee due for a Golden Krust Caribbean Restaurant?

According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, the initial franchise fee of $40,000 is due when the Franchise Agreement is signed. This fee grants the franchisee the right to operate a Golden Krust Caribbean Restaurant using the company's established system and trademarks.

It's important to note that this fee is generally non-refundable, as stated in Item 5 of the FDD, and is deemed fully earned by Golden Krust Caribbean Restaurant upon payment. However, the FDD indicates that the initial franchise fee may be reduced or waived for certain franchisees, such as employees or family members of shareholders. During the last fiscal year, the initial franchise fees paid ranged from $10,000 to $40,000.

In addition to the initial franchise fee, franchisees will need to purchase opening inventory from Golden Krust Caribbean Bakery, Inc., an affiliate of Golden Krust Caribbean Restaurant. The cost for this inventory ranges from approximately $2,500 to $4,500, and payment is due as required by the distributor. Prospective franchisees should factor these initial costs into their financial planning and be aware of the payment terms for both the franchise fee and the opening inventory.