How is the royalty fee for a Golden Krust Caribbean Restaurant franchise paid?
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.
NOTE 1: We may reduce or waive (and we have reduced and waived) the fees noted above for certain franchisees including but not limited to, employees of ours or of our related entities and for family members (and their heirs) who are shareholders of ours or of our related entities. Except as stated, all fees and expenses described in this Item are non-refundable and, unless otherwise indicated, are imposed uniformly by, and are payable to, us. Unless we have noted differently, we may increase these amounts based upon changes in market conditions, our cost of providing services and future policy changes, but we have no present plans to increase any fees. Fees are paid using EFT or other means we require.
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 paid weekly via Electronic Funds Transfer (EFT). The royalty is the greater of 5% of Gross Sales or $250. Gross Sales are reported on the 3rd business day of the month, but Golden Krust Caribbean Restaurant reserves the right to change this.
Gross Sales are defined as the total revenue from all products and services sold by the restaurant, including cash and credit sales, sales on the premises, deliveries, catering, and other sales methods, regardless of whether the sales method is permitted. Gross Sales do not include sales taxes, proceeds from gift cards, or guest refunds made in good faith.
It is important to note that Golden Krust Caribbean Restaurant may reduce or waive fees for certain franchisees, including employees or family members who are shareholders. All fees and expenses are generally non-refundable and are imposed uniformly. Golden Krust Caribbean Restaurant may increase these amounts based on market conditions, the cost of providing services, and future policy changes.