Does Golden Krust Caribbean Restaurant reserve the right to create an advertising council in the future?

According to the 2024 Franchise Disclosure Document, Golden Krust Caribbean Restaurant does not currently have an advertising council, but they explicitly reserve the right to establish one in the future. This means that while franchisees may not be involved in an advertising council at the start of their franchise agreement, Golden Krust Caribbean Restaurant could choose to create one later on.

If an advertising council is created, it could impact franchisees by potentially changing how advertising strategies and funds are managed. Currently, Golden Krust Caribbean Restaurant directs all programs financed by the Advertising Fund and has sole discretion over creative concepts and media placement. The creation of an advertising council could introduce a collaborative element, depending on its structure and franchisee representation.

It is important for prospective franchisees to understand that Golden Krust Caribbean Restaurant also reserves the right to modify or terminate the Advertising Fund. They can defer or reduce contributions from any franchisee, or even suspend or terminate the fund with 30 days' notice. If the Advertising Fund is terminated, any unspent monies will be spent or distributed to franchisees based on their contributions over the previous 12 months. Franchisees are also required to spend 1% of their annual gross sales on local marketing, including digital marketing.