Can Golden Krust Caribbean Restaurant be one of the designated or approved suppliers for the franchisee?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
Restaurant: (1) meet specifications that we establish; and/or (2) be purchased only from suppliers that we have expressly approved; and/or (3) be purchased only from a manufacturer, wholesaler, distributor, dealer, retailer, or other vendor or source that we designate as the source for particular products or services (a
"Designated Supplier") (which may be us or an affiliate or a buying cooperative that we organize); and/or (4) establish food commissaries and distribution facilities (directly, through our affiliates, and/or our designees), and designate these as Designated Suppliers or approved suppliers. To the extent that we establish specifications, require approval of suppliers, or name Designated Suppliers for particular items, we will provide the requirements to you in writing. If we elect to name ourselves or an affiliate as the Designated Supplier for a particular item, you must purchase all of your requirements of the item from us or the affiliate. You must submit orders in accordance with the terms and procedures we specify. Any conflicting terms and conditions of sale stated in your purchase order will have no effect. In case of shortages, we will have complete discretion to allocate products among Golden Krust Restaurants (and, at our option, other channels of distribution). If shortages or an event of Force Majeure prevent us from being able to supply your Restaurant with its requirements, you are authorized to purchase supplies from other sources for use at the Restaurant until we are again able to meet the Restaurant's
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, Golden Krust Franchising, Inc. or its affiliates can be designated as a supplier. Franchisees are required to purchase all their requirements of a particular item from Golden Krust Caribbean Restaurant or its affiliate if they are the designated supplier. The franchisee must submit orders according to the terms and procedures specified by Golden Krust Caribbean Restaurant. Conflicting terms in the franchisee's purchase order will not be effective.
In the event of shortages, Golden Krust Caribbean Restaurant has the discretion to allocate products among Golden Krust Restaurants and other distribution channels. If shortages or a Force Majeure event prevent Golden Krust Caribbean Restaurant from supplying the restaurant's requirements, the franchisee is authorized to purchase supplies from other sources, provided that the alternative supplies meet Golden Krust Caribbean Restaurant's specifications and prior written approval is given.
Golden Krust Caribbean Restaurant also retains the right to request reports from any Designated Supplier or approved suppliers, including usage reports for products purchased for the Restaurant. This allows Golden Krust Caribbean Restaurant to monitor purchasing and maintain quality control across its franchise system. Franchisees must use only those fixtures, furnishings, equipment and signs that Golden Krust Caribbean Restaurant has approved and purchase or lease approved brands, types or models of fixtures, furnishings, equipment and signs only from suppliers Golden Krust Caribbean Restaurant has designated or approved, which may include Golden Krust Caribbean Restaurant and/or its affiliates.