Is the initial franchise fee for a Golden Krust Caribbean Restaurant refundable?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
You must pay the initial franchise fee (the "Initial Franchise Fee") of $40,000 when you sign the Franchise Agreement.
We may reduce or waive the initial franchise fee for certain franchisees including, but not limited to, employees of ours or of our related entities and for family members (and their heirs) who are shareholders of ours or of our related entities. Except as stated, the fees described in this Item are uniformly imposed, payable in lump-sum, deemed fully earned when paid, and are non-refundable under any and all circumstances. During our last fiscal year, franchisees paid between $10,000 to $40,000 for the initial franchise fee.
Source: Item 5 — INITIAL FEES (FDD page 11)
What This Means (2024 FDD)
According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, the initial franchise fee is generally non-refundable. The standard initial franchise fee is $40,000, payable when signing the Franchise Agreement. Golden Krust Caribbean Restaurant deems this fee fully earned upon payment.
However, there is a specific circumstance where a portion of the initial franchise fee may not be retained by Golden Krust Caribbean Restaurant. If a mutually agreeable site for the restaurant cannot be found within one year of signing the Franchise Agreement, Golden Krust Caribbean Restaurant may terminate the agreement. In this case, it appears that the initial fee will be retained by Golden Krust Caribbean Restaurant even if the agreement is terminated.
While the standard policy is non-refundable, Golden Krust Caribbean Restaurant may reduce or waive the initial franchise fee for certain franchisees, including employees or family members of shareholders. During the last fiscal year, the initial franchise fees paid ranged from $10,000 to $40,000, indicating that some franchisees did receive a reduced fee. Prospective franchisees should confirm the specific terms and conditions regarding fee reductions or waivers with Golden Krust Caribbean Restaurant.