What is the transfer fee required by Golden Krust Caribbean Restaurant for franchise transfers?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
of one of your owners, by will, declaration of or transfer in trust or under the laws of intestate succession; or
- (f) pledge of this Agreement (to someone other than us) or of an ownership interest in you as security, foreclosure upon the Restaurant or your transfer, surrender or loss of possession, control or management of the Restaurant.
C. CONDITIONS FOR APPROVAL OF TRANSFER
Our approval for a transfer shall be conditioned upon the following:
(1) you be then in full compliance with the terms of this and any other agreement between us including but not limited to complying with all current system standards and you or the transferee paying
to us a transfer fee of $10,000.00. In addition, you and the transferee must sign all agreements we require (which may include an assignment agreement or a new franchise agreement (or the remainder of the term of this Agreement)).
- (2) the transferee and its owners meeting our then-current criteria for franchisees, having adequate financial resources, aptitude, experience and otherwise being capable of operating a Golden Krust Restaurant.
- (3) you submitting all proposed advertisements for the sale or other disposition of the franchise to us for written approval, our approval shall not be unreasonably withheld;
- (4) you paying all amounts owed to us and our affiliates and all other creditors of your Golden Krust Restaurant;
- (5) you executing a general release of us, our affiliates and officers, directors and employees; and
- (6) the transferee purchasing all of your assets used in the Golden Krust Restaurant, assuming all of your existing business liabilities including liabilities owed to us and assuming your lease.
- (7) you or your proposed transferee agreeing to update, remodel and refurbish your Restaurant to reflect the then current design and trade dress of Golden Krust Restaurants.
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 seeking to transfer their franchise must pay a transfer fee of $10,000. This fee is one of several conditions that must be met for Golden Krust Caribbean Restaurant to approve the transfer.
In addition to the transfer fee, the franchisee must be in full compliance with all agreements with Golden Krust Caribbean Restaurant and adhere to current system standards. The potential transferee must also meet Golden Krust Caribbean Restaurant's criteria for franchisees, demonstrating adequate financial resources, aptitude, and experience to operate the restaurant. Both the current franchisee and the transferee are required to sign all necessary agreements, which may include an assignment agreement or a new franchise agreement.
Additional conditions for transfer approval include submitting proposed advertisements for the sale to Golden Krust Caribbean Restaurant for approval, settling all outstanding debts to Golden Krust Caribbean Restaurant and its affiliates, and providing a general release of claims. The transferee must also purchase all of the current franchisee's assets, assume existing business liabilities, and take over the lease. Furthermore, Golden Krust Caribbean Restaurant may require the restaurant to be updated and remodeled to reflect the current design standards.
Golden Krust Caribbean Restaurant retains sole discretion in approving any transfer, ensuring that the terms and conditions of the transfer do not adversely affect the operation of the franchise. This comprehensive set of requirements is typical in franchising to maintain brand standards and ensure the continued success of the franchise system.