To whom is the initial franchise fee for Golden Krust Caribbean Restaurant paid?
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 is paid directly to the franchisor, referred to as "Us" in the document. The initial franchise fee for a traditional Golden Krust Caribbean Restaurant or Jerk 'N Patties Restaurant is $40,000. This fee is due in a lump sum when signing the Franchise Agreement.
This means that a prospective Golden Krust Caribbean Restaurant franchisee must pay $40,000 to the franchisor upon signing the franchise agreement. This fee grants the franchisee the right to operate a Golden Krust Caribbean Restaurant under the terms and conditions outlined in the franchise agreement. It's important to note that, as stated in Item 7, costs paid to Golden Krust Caribbean Restaurant are non-refundable, except as specifically described elsewhere in the FDD.
Understanding where your money goes during the initial investment phase is crucial. In the case of Golden Krust Caribbean Restaurant, the initial franchise fee goes directly to the franchisor, while other expenses like leasehold improvements, furniture, and equipment are paid to outside contractors and vendors. Knowing this breakdown helps potential franchisees plan their finances and understand the flow of funds during the setup process.