When is the royalty fee due for a Golden Krust Caribbean Restaurant franchise?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 5% of Gross Sales2 or | Payable weekly | See Note 2 for the definition of |
| $250 weekly, whichever is greater | by our sweep via EFT | "Gross Sales." Gross Sales are reported on the 3rd business day of the month, but we reserve the right to change this. |
NOTE 2: "Gross Sales" means the aggregate amount of all revenues generated from the sale of all products and services sold and all other income of every kind related to the Restaurant, whether for cash or credit (and regardless of collection in the case of credit), whether from sales on the Premises, by delivery, from catering, or other sales methods (whether the sales method is permitted or not). You may not reduce Gross Sales by the amount of any discounts provided to employees, family members and other businesses that you control. Gross Sales do not include sales taxes or other taxes collected from guests for transmittal to the appropriate taxing authority, proceeds from the sale of gift cards or stored value cards, and guest refunds made in good faith.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the royalty fee is due weekly. Specifically, it is payable weekly by electronic funds transfer (EFT) sweep. The royalty fee is calculated as 5% of Gross Sales or $250 weekly, whichever amount is greater.
Gross Sales are reported on the 3rd business day of the month, though Golden Krust Caribbean Restaurant retains the right to change this reporting schedule. Gross Sales include all revenues from product and service sales, as well as all other income related to the restaurant, whether in cash or credit, from on-premises sales, delivery, catering, or other methods.
Prospective franchisees should note that Gross Sales cannot be reduced by discounts provided to employees, family, or other businesses they control. Gross Sales also exclude sales taxes collected for transmittal to taxing authorities, proceeds from gift cards, and guest refunds made in good faith. Understanding how Gross Sales are calculated is crucial for accurately determining and paying the weekly royalty fee to Golden Krust Caribbean Restaurant.