There’s something incredibly special about the smell of Jamaican pastries as they bake! At Golden Krust, you’ll be focusing on foods that have long been part of the island’s diet, with zesty flavors, incredible spices, and fresh ingredients. As a franchisee, you’ll also have added exposure of this brand being in grocery store freezers with select food products, which will give you added brand awareness as people crave the jerk chicken, carrot cake, or curried goat that have become specialties of this fantastic food chain.
How Much Does It Cost To Start a New Franchise?
The amount you’ll pay for a franchise fee with Golden Krust depends on what kind of location you’re looking to open up. For those that wish to have a non-traditional franchise or a kiosk in a high traffic location, then the franchise fee is $15k and is due upon signing the agreement. For a traditional location, the franchise fee is $25k. Unlike other opportunities, however, nearly 60% of your franchise fee comes back to you in the help that you’ll get from the organization as you receive assistance with a number of pre-opening obligations.
The remainder of the franchise fee goes into the general operating fund. You do have 12 months to locate a site for your restaurant upon signing the franchise agreement and this location must be approved by Golden Krust. If a location cannot be found, then a 60% refund of your franchise fees will be returned to you and the agreement terminated. If your new franchise cannot open for any other reason, then the full franchise fee is non-refundable.
The franchise fees listed here are the standard fees, but they are negotiable. Golden Krust reserves the right to waive or reduce the initial fee, especially for employees of the organization or other related entities that have an established relationship with the brand.
There’s also a 3% royalty that must be paid weekly from your gross sales. This is done via an electronic sweep, which means it will be automatically deducted from your accounts based on the gross sales orders run through your POS. There’s also a 2% advertising royalty that must be paid and will be collected in the same fashion. Half of this advertising royalty is deposited into a general advertising fund and is used for brand recognition. The other half is spent on local marketing efforts, which can include local media if you so choose.
A typical investment will average about $350,000 to get your new franchise off the ground. It could be as low as $175k or be higher than $500k depending on your local market conditions, improvements that may be needed on-site, and other fees and expenses that may be required.
Does Golden Krust Provide Any Training or Support?
When you become a Golden Krust franchisee, you’ll receive an extensive amount of in-restaurant training at designated facilities. You’ll also receive a mandatory three-week training course at their corporate training center. You’ll receive additional support during the first two weeks your franchise is open for business to make sure you’re utilizing the tools that were given to you during the training sessions and Golden Krust is readily available for ongoing support as needed.
You’ll also receive assistance in finding and then purchasing or leasing the equipment that will be needed to create the Jamaican dishes that will make you a destination restaurant for your local community! You’ll need patty ovens and warmers, freezers, refrigerators, awnings, menu boards, and other unique items based on the needs of your local community. Many of the options that are recommended by Golden Krust are lease-to-own options if you choose to work through the agency, but you are allowed through the franchise agreement to select your own equipment suppliers or provide your own equipment, subject to the approval of the organization.
Site selection is incredibly important to this agency, as documented above, and will be the first hurdle you’ll face as a franchisee. Construction cannot begin on your new franchise until Golden Krust has approved your location. Most restaurants have a minimum of 500 square feet to them, but could be as high as 3,500 square feet depending on the needs and location within your local community. A kiosk has more flexibility in location, but still should be in a high traffic area and have a minimum of 250 square feet.
There are also interior design requirements that must be met in order to provide brand consistency. These standards are made available to you during the 12 month period you have to get your location confirmed and you can select your own architects and contractors or work with the relationships that Golden Krust has already developed, but final approval must be given before a grand opening can occur.
Is Golden Krust the Right Investment Opportunity For You?
With lower royalties than other restaurants and competitive franchise fees, Golden Krust could provide you with the right opportunity to get involved in this industry. The organization does require more compliance and oversight than other franchises in regards to design and location, but in return you’ll gain access to a proven model of success.
There is a net worth requirement of $300k for a kiosk location or $500k for a standalone restaurant. There must also be a minimum of $120k of liquid cash available. There are, however, opportunities to be an absentee owner in this structure, which isn’t always the case in this specific industry. Despite this, over 95% of franchisees choose to remain owner operators. With only 8 employees required to run a location, overhead costs can stay low, yet great food can still come out!
With locations available throughout the United States, with an emphasis on the Southeast and Southwest, the time could be right to bring a flavor of the Caribbean to your local community. If you have the ability to meet the financial requirements of this franchise, then apply online today to see if this is the right business relationship for you!