What is the minimum weekly royalty fee for a Golden Krust Caribbean Restaurant franchise?

According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, franchisees must pay a royalty fee, which is either 5% of gross sales or a flat $250 per week, whichever amount is greater. This royalty fee is payable weekly via electronic funds transfer (EFT). Gross sales are reported on the 3rd business day of the month, though Golden Krust Caribbean Restaurant reserves the right to change this reporting schedule.

For a prospective Golden Krust Caribbean Restaurant franchisee, this means that regardless of sales volume, they must pay at least $250 each week as a royalty. If 5% of their gross sales exceeds $250, they will pay the higher amount. This structure ensures that Golden Krust Caribbean Restaurant receives a minimum income from each franchise, while also sharing in the potential success of higher-performing locations.

It is important for potential franchisees to understand how "Gross Sales" is defined, as this figure directly impacts the royalty fee. The FDD specifies that "Gross Sales" includes all revenues from product and service sales, as well as all other income related to the restaurant, whether in cash or credit, and regardless of collection. Gross Sales do not include sales taxes, proceeds from gift cards, or guest refunds made in good faith. Franchisees should carefully track their sales and understand these inclusions and exclusions to accurately calculate their weekly royalty payments.

In addition to the royalty fee, Golden Krust Caribbean Restaurant franchisees must also pay a weekly national advertising fund contribution of 1.5% of gross sales. Franchisees must also spend an additional 1% of annual gross sales on local store marketing initiatives. These additional fees should be considered when evaluating the overall financial obligations of operating a Golden Krust Caribbean Restaurant franchise.