When is the management fee due for a Golden Krust Caribbean Restaurant franchise?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
ll overdue amounts |
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Standards Manual Replacement Fee | Then-current fee, currently, $300 per replacement | 15 days after billing | Cost of replacement copy |
| Management Fee | Then-current fee, currently, $250 per day | As agreed | Payable during period that our appointed manager manages the Restaur |
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the management fee is due 'as agreed.' The management fee is incurred when an appointed manager manages the restaurant due to the franchisee's death, disability, or abandonment of the business. The fee is the then-current fee, which is currently $250 per day.
This means that a Golden Krust Caribbean Restaurant franchisee will only be charged a management fee if they are unable to manage the restaurant themselves and Golden Krust Caribbean Restaurant appoints a manager to oversee operations. The specific payment schedule for this fee will need to be agreed upon between the franchisee (or their estate) and Golden Krust Caribbean Restaurant at the time the manager is appointed.
It is important for prospective franchisees to understand the circumstances under which this fee would be applied and to discuss the potential payment arrangements with Golden Krust Caribbean Restaurant to avoid any surprises should the need for a manager arise. This is not a typical, ongoing fee like a royalty or advertising fee, but rather a conditional expense.