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Golden Krust Caribbean Restaurant Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Golden Krust Franchise?
To open a Golden Krust Caribbean Restaurant franchise, you should be prepared for a total initial investment ranging from $225,900 to $687,000. This includes a franchise fee of $40,000. Additionally, you will need to have a minimum cash requirement of $150,000 and a net worth of at least $500,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for the journey ahead.
What Are the Ongoing Fees for Golden Krust Franchisees?
Golden Krust franchisees are subject to a royalty fee of 5% on gross sales, along with a marketing fee of 2.5%. These ongoing fees are essential for maintaining brand presence and support. It's important for potential franchisees to factor these costs into their financial planning, as they will impact overall profitability and cash flow as you operate your restaurant.
What Is the Average Revenue Potential for a Golden Krust Franchise?
Golden Krust franchises have demonstrated strong revenue potential, with an average annual revenue of approximately $1,557,077 per unit. The median annual revenue stands at $892,411, while some units report revenues as low as $243,364 and as high as $2,110,406. This variance highlights the importance of effective location selection and operational management in maximizing financial performance.
What Is the Expected Breakeven and Payback Period for a Golden Krust Franchise?
Franchisees can expect to break even within approximately 12 months of opening their Golden Krust restaurant. The investment payback period is around 16 months, making it a relatively quick turnaround compared to many other franchise opportunities. This timeline can be an attractive factor for potential investors looking for a solid return on their investment in the fast-casual dining sector.
Golden Krust Caribbean Restaurant Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Golden Krust Caribbean Restaurant Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2016 | 2017 | 2018 |
|---|---|---|---|
| Total Units | 113 | 118 | 111 |
| Net Change YoY | 5 | -7 | |
| Franchised Units | 106 | 112 | 106 |
| Net Change YoY | 6 | -6 | |
| Corporate Units | 7 | 6 | 5 |
| Net Change YoY | -1 | -1 |
Investment Overview
The Golden Krust Caribbean Restaurant franchise requires an initial investment ranging from $225,900 to $687,000. This includes a franchise fee of $40,000. Potential franchisees should have a minimum cash requirement of $150,000 and a net worth of at least $500,000 to ensure they can support their business effectively.
Revenue Potential
The average annual revenue per Golden Krust unit is approximately $1,557,077, with a median of $892,411. This indicates strong earning potential, but revenues can vary significantly, with the lowest reported at $243,364 and the highest at $2,110,406. Understanding these figures is crucial for assessing the viability of the franchise.
Ongoing Fees
Franchisees are subject to a royalty fee of 5% of gross sales, along with a marketing fee of 2.5%. These fees contribute to the brand's overall marketing efforts and operational support, helping franchisees maintain competitive positioning in the market.
Breakeven and Payback
Golden Krust franchisees can expect to reach breakeven within approximately 12 months, with a payback period on their investment estimated at around 16 months. These timelines are essential for potential investors to gauge the speed at which they can recoup their initial investment.
Corporate and Franchised Units
As of recent years, Golden Krust operates a mix of franchised and corporate units. In 2016, there were 106 franchised units and 7 corporate units. This number slightly fluctuated in subsequent years, reflecting the brand's growth and adaptation in the market.
Operational Expenses
Annual running expenses for a Golden Krust unit can range from $122,700 to $325,000, covering costs such as rent, utilities, insurance, and salaries. Understanding these expenses is vital for franchisees to manage their financial performance effectively and optimize profitability.
Frequently Asked Questions
The initial investment for a Golden Krust franchise ranges from $225,900 to $687,000, which includes the franchise fee of $40,000 and other startup costs.