What pre-opening obligations does Golden Krust Caribbean Restaurant have to the franchisee before the restaurant opens?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
ADVERTISING, COMPUTER SYSTEMS, OPERATIONS MANUAL, WEBSITE, AND TRAINING**
Except as listed below, we are not required to provide you with any assistance.
Pre-Opening Obligations
Before you open the Restaurant, we will:
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- Site Selection. Provide you with our site selection criteria for the Restaurant. Your site must meet our criteria for demographic characteristics, traffic patterns, parking, character of neighborhood, competition from and proximity to other businesses, the nature of other businesses in proximity to the site and other commercial characteristics, and the size, appearance and other physical characteristics of the proposed site. We will approve or disapprove a location you propose for the Restaurant within thirty (30) days after we receive the complete site report and other materials requested. If we cannot agree upon a site within one (1) year of your signing our Franchise Agreement, we will terminate your Franchise Agreement and retain your initial franchise fee. (Franchise Agreement - Section II.A.
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- Fixtures, Furnishings, Equipment and Signs. Furnish you with mandatory and suggested specifications for your restaurant, including requirements for dimensions, design, image, interior sample drawings, décor, fixtures, equipment, signs, furnishings and color scheme. (Franchise Agreement - Sections II.C. and D.)
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- Development of Restaurant. Assist you, at your request, by providing information for contractors and architects and otherwise furnishing information to assist you in developing the Restaurant in accordance with our specifications. (Franchise Agreement - Section II.C.)
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- System Standards. As discussed in Item 8, identify the fixtures, furnishings, equipment (including cash registers, and computer hardware and software) signs, food, products, materials and supplies necessary for the Restaurant to begin operations, the minimum standards and specifications that must be satisfied and the suppliers from whom these items may be purchased or leased (including us and/or its affiliate). (Franchise Agreement - Section II.C., VIII.A.). We do not provide any assistance with delivery or installation of any such items.
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- Brand Standards Manual. Loan you one copy of the confidential Brand Standards Manual. The Brand Standards Manual contains mandatory and suggested specifications, standard operating procedures and rules that we require from time to time. A copy of the Table of Contents of the Brand Standards Manual is attached to this Disclosure Document as Exhibit F. (Franchise Agreement - Section IV.B.)
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- Training. Train you (or your managing owner) and one managerial employee. (Franchise Agreement - Section IV.A.)
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- General Guidance Advertising. Assist you in implementing the grand opening advertising and promotional program for the Restaurant. (Franchise Agreement - Section IV.B.(3))
Continuing Obligations
After opening your Restaurant and during the operation of your Franchised Business, we will:
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- General Guidance. Advise you from time to time regarding the operation of your Restaurant based on reports you submit to us or inspections we make. We will also provide you with guidance relating to standards, specifications and operating procedures and methods used by Golden Krust Restaurants; purchasing required fixtures, furnishings, equipment, signs, products, materials and supplies; advertising and marketing programs, including your grand opening; and, administrative, bookkeeping and accounting procedures. (Franchise Agreement – Section IV.B.) We have no obligation to assist you in establishing prices.
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- System Improvements. We will, as we deem necessary, make available to you any improvements, additions or deletions to the System, services and products offered, to which you agree to comply, at your own expense, with all such modifications and requirements needed to implement them. (Franchise Agreement – Section IV.B, VIII.A.)
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- Advertising Materials. In our discretion, periodically furnish you with samples of advertising, marketing and promotional formats and materials. We will review and approve proposed local advertising you intend to use. We will administer the Advertising Fund. (Franchise Agreement – Sections IV.B., IX and X)
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- Periodic Inspections and Evaluations. Periodically inspect your Restaurant, remove samples of any products, materials, or supplies for testing and analysis, and inspect and copy any books, records and documents relating to your operation of the Restaurant as we deem advisable and without prior notice to you.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, OPERATIONS MANUAL, WEBSITE, AND TRAINING (FDD pages 18–23)
What This Means (2024 FDD)
According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, before the restaurant opens, Golden Krust Caribbean Restaurant has several obligations to the franchisee. These include providing site selection criteria, which the franchisee's site must meet to be approved. Golden Krust Caribbean Restaurant will also furnish mandatory and suggested specifications for the restaurant, including requirements for dimensions, design, image, interior sample drawings, décor, fixtures, equipment, signs, furnishings, and color scheme. Additionally, Golden Krust Caribbean Restaurant will assist, upon request, with information for contractors and architects to aid in developing the restaurant according to their specifications. They will also identify necessary items for the restaurant to begin operations, such as fixtures, furnishings, equipment, signs, food, products, materials, and supplies, along with minimum standards and approved suppliers.
Golden Krust Caribbean Restaurant will loan the franchisee one copy of the confidential Brand Standards Manual, which contains mandatory and suggested specifications, standard operating procedures, and rules. They will also train the franchisee (or their managing owner) and one managerial employee. Furthermore, Golden Krust Caribbean Restaurant will assist in implementing the grand opening advertising and promotional program for the restaurant. However, the FDD states that Golden Krust Caribbean Restaurant is not required to provide any assistance except for what is listed.
The initial training program includes 40 hours of classroom training and 120 hours of on-the-job training. The training covers pre-opening activities, design and construction, hospitality standards, food safety and sanitation, employee safety and security, personnel management, finance and accounting, marketing and public relations, culinary, and operations. The training will take place at the Golden Krust Caribbean Restaurant training facility in the Bronx, NY, or at the franchisee's restaurant. The franchisee is also required to purchase the TOAST Point of Sale System, which includes hardware and implementation costs, as well as ongoing monthly support fees. The TOAST Point of Sale System has a total cost of $449.50, with an implementation cost of $754.70, and a monthly support fee of $223.50.