When is the initial franchise fee due for a Golden Krust Caribbean Restaurant franchise?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| YOUR ESTIMATED INITIAL INVESTMENT | ||||
|---|---|---|---|---|
| Golden Krust Caribbean Restaurant (Traditional Restaurant) or Jerk ‘N Patties Restaurant | ||||
| Type of Expenditure | Type of Expenditure Amount | When Due | To Whom Payment Is To Be Made | |
| Initial Franchise Fee1 | $40,000 | Lump Sum | On signing Franchise Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the initial franchise fee of $40,000 is due in a lump sum upon signing the Franchise Agreement. This fee is paid directly to Golden Krust Caribbean Restaurant. Item 5 of the FDD provides more detailed information regarding the initial franchise fee.
This means that a prospective Golden Krust Caribbean Restaurant franchisee must have $40,000 available at the time they sign the agreement to secure their franchise rights. This is a standard practice in franchising, as the initial fee compensates the franchisor for granting the franchise and providing initial support and training.
It is important to note that this fee is generally non-refundable, as stated elsewhere in Item 7. The FDD also indicates that Golden Krust Caribbean Restaurant does not provide direct or indirect financing for the initial franchise fee, but a franchisee may be able to obtain financing from third-party vendors, subject to credit requirements and the lender's terms.