Does Golden Krust Caribbean Restaurant provide any warranty regarding the suitability of the Premises?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
You acknowledge that you are responsible for locating a site for the Premises. Sites are subject to our approval. You acknowledge and agree that our recommendation or approval of the Premises, and any information regarding the Premises communicated to you, do not constitute a representation or warranty of any kind, express or implied, as to the suitability of the Premises for a Golden Krust Restaurant or for any other purpose. Our recommendation or approval of the Premises indicates only that we believe that the Premises falls within the acceptable criteria for sites and premises. Application of criteria that have appeared effective with respect to other sites and premises may not accurately reflect the potential for all sites and premises, and, after our approval of a site, demographic and/or other factors include in or exclude from our criteria could change, thereby altering the potential of a site and premises. The uncertainty and instability of such criteria are beyond our control, and we will not be responsible for the failure of a site and premises we have recommended or approved to meet expectations as to potential revenue or operational criteria. You acknowledge and agree that your acceptance of the Franchise is based on your own independent investigation of the suitability of the Premises.
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 and you cannot agree upon a
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, franchisees are responsible for locating a site for their restaurant, subject to the franchisor's approval. However, Golden Krust Caribbean Restaurant makes no representations or warranties regarding the suitability of the premises for a Golden Krust Restaurant or any other purpose. The franchisor's recommendation or approval only indicates that the site falls within their acceptable criteria.
Golden Krust Caribbean Restaurant states that the application of criteria that have appeared effective with respect to other sites and premises may not accurately reflect the potential for all sites and premises, and, after their approval of a site, demographic and/or other factors include in or exclude from their criteria could change, thereby altering the potential of a site and premises. The uncertainty and instability of such criteria are beyond their control, and they will not be responsible for the failure of a site and premises they have recommended or approved to meet expectations as to potential revenue or operational criteria.
This means that while Golden Krust Caribbean Restaurant will review and approve the proposed location, the franchisee ultimately bears the risk of the site's success. The franchisee's acceptance of the franchise is based on their own independent investigation of the suitability of the premises. If Golden Krust Caribbean Restaurant and the franchisee cannot agree upon a site within one year of signing the Franchise Agreement, Golden Krust Caribbean Restaurant will terminate the agreement and retain the initial franchise fee.