What is the process for a Golden Krust Caribbean Restaurant franchisee to transfer control of the restaurant operation?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
of one of your owners, by will, declaration of or transfer in trust or under the laws of intestate succession; or
- (f) pledge of this Agreement (to someone other than us) or of an ownership interest in you as security, foreclosure upon the Restaurant or your transfer, surrender or loss of possession, control or management of the Restaurant.
C. CONDITIONS FOR APPROVAL OF TRANSFER
Our approval for a transfer shall be conditioned upon the following:
(1) you be then in full compliance with the terms of this and any other agreement between us including but not limited to complying with all current system standards and you or the transferee paying
to us a transfer fee of $10,000.00. In addition, you and the transferee must sign all agreements we require (which may include an assignment agreement or a new franchise agreement (or the remainder of the term of this Agreement)).
- (2) the transferee and its owners meeting our then-current criteria for franchisees, having adequate financial resources, aptitude, experience and otherwise being capable of operating a Golden Krust Restaurant.
- (3) you submitting all proposed advertisements for the sale or other disposition of the franchise to us for written approval, our approval shall not be unreasonably withheld;
- (4) you paying all amounts owed to us and our affiliates and all other creditors of your Golden Krust Restaurant;
- (5) you executing a general release of us, our affiliates and officers, directors and employees; and
- (6) the transferee purchasing all of your assets used in the Golden Krust Restaurant, assuming all of your existing business liabilities including liabilities owed to us and assuming your lease.
- (7) you or your proposed transferee agreeing to update, remodel and refurbish your Restaurant to reflect the then current design and trade dress of Golden Krust Restaurants.
- (8) we have approved the material terms and conditions of such transfer and determine that in our business judgment the price and terms will not adversely affect the transferee's operation of the franchise.
Franchisor has sole discretion in approving any and all transfers.
**D.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, transferring a Golden Krust Caribbean Restaurant franchise requires franchisor approval, which is contingent on several conditions. The franchisee must be in full compliance with all agreements, including adhering to current system standards. A transfer fee of $10,000.00 is required, and both the franchisee and the transferee must sign all necessary agreements, which may include an assignment agreement or a new franchise agreement.
The transferee must meet Golden Krust Caribbean Restaurant's criteria for franchisees, demonstrating adequate financial resources, aptitude, and experience to operate the restaurant. The franchisee must submit any proposed advertisements for the sale of the franchise for written approval, which will not be unreasonably withheld. All outstanding amounts owed to Golden Krust Caribbean Restaurant and its affiliates, as well as other creditors, must be paid. The franchisee must also execute a general release of Golden Krust Caribbean Restaurant, its affiliates, officers, directors, and employees.
Furthermore, the transferee must purchase all of the franchisee's assets used in the Golden Krust Caribbean Restaurant, assume all existing business liabilities (including those owed to Golden Krust Caribbean Restaurant), and assume the lease. Either the franchisee or the transferee must agree to update, remodel, and refurbish the restaurant to reflect the current design and trade dress of Golden Krust Caribbean Restaurant. Golden Krust Caribbean Restaurant must approve the material terms and conditions of the transfer, determining that the price and terms will not adversely affect the transferee's operation of the franchise. The franchisor retains sole discretion in approving any and all transfers.
In the event of the franchisee's death or disability, their representative must transfer the interest in the Franchise Agreement within six months, subject to the same terms and conditions applicable to transfers. Failure to do so constitutes a breach of the agreement. These transfer conditions are typical in franchising to ensure brand consistency and the continued success of the franchise system.