How often do Golden Krust Caribbean Restaurant franchisees pay royalty income?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
The franchise agreements typically require the franchisee to pay initial, nonrefundable franchise license fees prior to opening the respective restaurant, as well as continuing fees, or royalty income, on a weekly basis based upon a percentage of franchisee gross sales.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, franchisees are typically required to pay royalty income on a weekly basis. This royalty is calculated as a percentage of the franchisee's gross sales.
This weekly payment schedule means that franchisees must consistently manage their cash flow to ensure they can meet this obligation. It also allows Golden Krust Caribbean Restaurant to receive a steady stream of income, closely tied to the sales performance of each franchise location.
In addition to royalty payments, Golden Krust Caribbean Restaurant franchisees also typically pay continuing advertising fees on a weekly basis, also based on a percentage of gross sales. Any royalty or advertising revenue that is not paid within 30 days is reserved against.