What are the requirements for a Golden Krust Caribbean Restaurant franchisee to renew their franchise term?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
ted agreements. You should read these provisions in the agreements attached to this Disclosure Document.**
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| (a) Length of the | Section I.D. | 10 years |
| Franchise Term | ||
| (b) Renewal or Extension | Section I.E. | One (1) additional 10 year term. |
| of the term | ||
| (c) Requirements for Franchisee to renew or extend | Section I.E. | Not in default of any agreement with us and paid all monetary obligations. Right to maintain possession of premises or secure substitute premises. Remodel or renovate to our satisfaction. Give timely notice. Sign general release (Exhibit H includes the current form). Execute our then-current franchise agreement which may contain materially different terms and conditions from your original franchise agreement and pay renewal fee. |
| (d) Termination by | Section XV.A. | You do not have the right to terminate the |
| Franchisee | Agreement. | |
| (e) Termination by | Not Applicable | |
| franchisor without | ||
| cause | ||
| (f) Termination by | Section XV.B. | We can terminate only if you commit one of |
| Franchisor with cause | several violations. | |
| (g) "Cause" defined curable defaults | Section XV.B. | You have 2 hours to cure health, safety or sanitation law violations; 10 days to cure monetary defaults; 30 days to cure other defaults not listed in Section XV.B. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 27–29)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the franchise term is for 10 years with an option for one additional 10-year term. To renew or extend the term, a franchisee must not be in default of any agreement with Golden Krust Caribbean Restaurant and must have paid all monetary obligations.
Additionally, the franchisee must have the right to maintain possession of the premises or secure a substitute premises. The franchisee will also be required to remodel or renovate the restaurant to Golden Krust Caribbean Restaurant's satisfaction.
Finally, the franchisee must give timely notice of their intent to renew, sign a general release, execute the then-current franchise agreement (which may contain materially different terms and conditions from the original franchise agreement), and pay a renewal fee. This means that the costs and conditions for operating the Golden Krust Caribbean Restaurant could change upon renewal.