What is the renewal fee for a Golden Krust Caribbean Restaurant franchise agreement?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
his Agreement. You may not operate the Restaurant from any site other than the Premises without our prior written consent. If we consent to the Restaurant's relocation, we have the right to charge you for the reasonable costs and expenses we incur in connection with the relocation.
E. RENEWAL
You may renew the franchise for one (1) additional ten (10) year term on the terms and conditions contained in this agreement provided that the following conditions are first satisfied.
(1) You have the right to remain in possession of the Premises for the renewal term;
- (2) You give us written notice of your intention to renew at least six (6) months but not more than twelve (12) months prior to the end of the term of this agreement or any renewal period;
- (3) You complete to our satisfaction such maintenance, refurbishing, renovating and remodeling of the Premises and its contents as we may reasonably require, no later than thirty (30) days before the end of the term of this agreement or any renewal period;
- (4) As of the end of the term of this agreement or any renewal period you are not in default under this or any other agreement with us or our affiliates and you have met all monetary obligations owing under such agreement throughout their terms and have otherwise substantially complied with your obligations under all such agreements;
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, a franchisee can renew their franchise agreement for one additional ten-year term if certain conditions are met. One of these conditions is the payment of a renewal fee.
The renewal fee is $25,000 and must be paid at the time of renewal. In addition to the renewal fee, the franchisee must execute the new franchise agreement that is currently in effect for new franchises at the time of renewal and agree to the royalty and other terms outlined in that agreement.
Other conditions for renewal include ensuring the franchisee has the right to remain in possession of the premises for the renewal term, providing written notice of intent to renew at least six months but not more than twelve months before the end of the current term, completing any required maintenance, refurbishing, renovating, and remodeling of the premises to Golden Krust Caribbean Restaurant's satisfaction, not being in default under any agreement with Golden Krust Caribbean Restaurant or its affiliates, and executing a general release in favor of Golden Krust Caribbean Restaurant, its affiliates, and their respective officers, directors, and employees.