Under what conditions can a Golden Krust Caribbean Restaurant franchisee purchase supplies from other sources?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
If shortages or an event of Force Majeure prevent us from being able to supply your Restaurant with its requirements, you are authorized to purchase supplies from other sources for use at the Restaurant until we are again able to meet the Restaurant's requirements, provided that the alternative supplies meet our specifications and that we have given prior written approval.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, a Golden Krust Caribbean Restaurant franchisee is generally required to purchase supplies from designated or approved suppliers. However, there is an exception.
The franchise agreement states that if shortages or an event of Force Majeure prevent Golden Krust Caribbean Restaurant from supplying a restaurant with its requirements, the franchisee is authorized to purchase supplies from other sources. This authorization is conditional.
Specifically, the alternative supplies must meet Golden Krust Caribbean Restaurant's specifications, and the franchisee must obtain prior written approval from Golden Krust Caribbean Restaurant before making such purchases. This ensures that even in emergency situations, the quality and standards of the products used in the Golden Krust Caribbean Restaurant are maintained. This is a fairly typical clause in franchise agreements, allowing for flexibility in supply chains while protecting brand standards.