Golden Krust Caribbean Restaurant Franchise Cost, Revenue & Review 2026
- Investment
- $213K – $776K
- Disclosed sales
- $1.3M
- gross sales, not profit
- SBA charge-off
- Limited · 19 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Golden Krust is a quick-service franchise serving Caribbean and Jamaican favorites, beef patties, jerk chicken, and rice and peas. Franchisees run restaurants managing food prep, counter service, and staffing.
FranchiseVerdict summary · 2026
A Golden Krust Caribbean Restaurant franchise requires a total initial investment of $213K – $776K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.3M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $213K – $776K
- 27th pct Service Resta…
- Avg gross sales
- $1.3M
- Outlet subset26th pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 108
- 77th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $213K – $776K including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.3M/year (reported for a subset of outlets rather than the whole system).
- RISKVerdict B (Above average), verdict score 55/100 (higher is better).
- GROWTHNegative: net -1 franchised outlets in the latest year (4 opened, 5 closed); 5 signed but not yet open (Item 20).
- TERMSNo protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Golden Krust Franchising, Inc.
- CEO title
- Chief Executive Officer
- Zehra Sheriff
- Incorporated in
- NY
- HQ
- 399 Knollwood Road, Suite 117, White Plains, NY 10603
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
- Franchisor revenue
- $5.9M
- vs $5.3M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Zehra Sheriff
- Headquarters
- NY
- Founded
- 1995
- FDD year
- 2024
- States available
- 8
Can you afford it, and what does the money buy?
Entry cost is about typical for a quick-service restaurants franchise (near the category median).
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Leasehold Improvements | $81K | $407K | |
| Furniture, Fixtures and Equipment | $48K | $98K | |
| POS - Computer Hardware & Implementation | $3K | $4K | |
| Signage | $4K | $16K | |
| First Month's Rent | $3K | $15K | |
| Security Deposit | $0 | $45K | |
| Opening Inventory and Supplies | $10K | $18K | |
| Grand Opening Advertising | $3K | $10K | |
| Training Expenses | $3K | $5K | |
| Miscellaneous Opening Costs | $8K | $18K | |
| Additional Funds - 3 months | $10K | $100K | |
| Total initial investment | $213K | $776K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $213K – $776K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $100K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 5.0%
- Set by a formula · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.5% |
| Training fee | $5K |
| Transfer fee | $10K |
| Renewal fee | $25K |
| Inventory (initial) | $10K – $18K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 37% above the quick-service restaurants norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2024 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Golden Krust Caribbean Restaurant until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$549K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Golden Krust Caribbean Restaurant unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $1.3M
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Gross Revenue by Quartile
- Sample size
- 106 outlets
- vs category median 19 · large
- Range (low → high)
- $131K→$4.1MCited, not corroborated — printed on page 31 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $558K→$2.5M
- Bottom 25% → top 25%
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 3 / 10
- vs category median 4 / 10 · below
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.3M/year in gross sales. Revenue-to-investment ratio: 2.7x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 6.5% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 3/10 — moderate disclosure depth. Average and range data are available but detailed cohort breakdowns may be limited.
Operator retention
System roughly stable (-0.9% 3-year CAGR) with 108 units.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Golden Krust Caribbean Restaurant Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 108
- Opened
- 4
- Last reporting year
- Closed
- 5
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.6%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (3-yr)
- +0.9%
- Net unit change over 3 years
- 3-yr CAGR
- -0.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 1
- Signed, not yet open
- 5
- 0.05 per open outlet · Item 20 Table 5
- Projected new
- 5
- Franchisor's next-year forecast
- Termination rate
- 0.9%
- Franchisor-initiated terminations
- Ceased ops
- 4.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
71 current owners across 5 states.
- NY 47
- GA 12
- NJ 7
- NC 3
- MD 2
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 19
- Loan volume
- $5.0M
- Median loan
- $264K
- average
- Charge-off rate
- Limited · 19 loans
- Limited SBA coverage: 19 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 19 loans
- 5-yr charge-off
- Limited · 19 loans
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- 0
Vintage analysis
Golden Krust Caribbean Restaurant charge-off rate by loan vintage
Top lenders financing Golden Krust Caribbean Restaurant franchisees
Showing 3 of 13 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Golden Krust Caribbean Restaurant from SBA 7(a) FOIA data.
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Community Bank | 3 | $1.4M | 0.0% |
| 2 | Hana Bank USA National Association | 2 | $258K | 0.0% |
| 3 | JPMorgan Chase Bank, National Association | 2 | $75K | 0.0% |
| 4 | TD Bank, National Association | 2 | $100K | 0.0% |
| 5 | PNC Bank, National Association | 2 | $1.6M | N/A |
| 6 | New York Business Development Corporation | 1 | $150K | N/A |
| 7 | Flushing Bank | 1 | $150K | N/A |
| 8 | Zions Bank, A Division of | 1 | $350K | 0.0% |
| 9 | Stearns Bank National Association | 1 | $180K | N/A |
| 10 | Oconee State Bank | 1 | $350K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| NYNew York | 11 | 0 | 0.0% |
| GAGeorgia | 3 | 0 | -- |
| NCNorth Carolina | 2 | 0 | 0.0% |
| FLFlorida | 1 | 0 | -- |
| NJNew Jersey | 1 | 0 | -- |
| TXTexas | 1 | 0 | 0.0% |
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Golden Krust presents a CAUTION-to-HIGH RISK profile due to shrinking unit base, unresolved litigation over fee practices and competition, undisclosed profitability metrics, and franchisor financial concerns—requiring extensive validation before commitment.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Three arbitration/litigation matters disclosed: (1) GK v. Clayborne – GK prevailed, awarded ~$710K; (2) Auctus/Klayrock v. GK – franchisees prevailed, GK paid $1.95M settlement; (3) Clayborne v. GK – pending arbitration as of issuance date
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total revenue = Total Franchise Revenues (royalties $3,566,598 + advertising $1,503,874 + franchising fees $95,050 = $5,165,522) plus company-owned restaurant sales $2,896,104, FY2022 (year ended Dec 31, 2022). Audited by CliftonLarsonAllen LLP; report dated Sept 21, 2023. Going-concern/financial-condition risk highlighted on cover (Item 21).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 55 / 100 verdict
- 01MINORDeclining unit count (-0.9% YoY) signals system contraction and potential franchisee dissatisfaction
- 02HIGHActive litigation involving non-competition, breach of contract, and discriminatory fee practices suggests franchisor-franchisee conflict and operational inconsistency
- 03MEDNet income not disclosed in Item 19 prevents accurate ROI calculation; with $212,600-$775,900 investment required, profitability opacity is critical gap
- 04MINORRoyalty floor of $250/week ($13,000 annually) creates fixed burden even during low-revenue periods, compressing margins for struggling locations
- 05MINORUnprotected territory exposes franchisees to direct competition from other Golden Krust units and cannibalization risk
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | White Plains, New York |
| Jury trial waiver | No |
| Governing law | NY |
| Litigation count | 3 |
View Item 3 litigation summary
Three arbitration/litigation matters disclosed: (1) GK v. Clayborne – GK prevailed, awarded ~$710K; (2) Auctus/Klayrock v. GK – franchisees prevailed, GK paid $1.95M settlement; (3) Clayborne v. GK – pending arbitration as of issuance date
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 120 hrs
- Training location
- Golden Krust training facility in Bronx, NY or at a designated training center or functioning Restaurant
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- TOAST
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TOAST
Item 20 · call current owners
Franchisee Contacts
71 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Golden Krust Caribbean Restaurant franchise?
The total investment to open a Golden Krust Caribbean Restaurant franchise ranges from $213K – $776K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Golden Krust Caribbean Restaurant franchise owners earn?
According to Item 19 of the Golden Krust Caribbean Restaurant FDD, the average gross sales per unit is $1.3M. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Golden Krust Caribbean Restaurant?
Golden Krust Caribbean Restaurant is franchised by Golden Krust Franchising, Inc.. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Golden Krust Caribbean Restaurant FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Golden Krust Caribbean Restaurant FDD and qualifies whose outlets they describe.
What is Golden Krust Caribbean Restaurant's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Golden Krust Caribbean Restaurant (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Golden Krust Caribbean Restaurant franchise locations are there?
As of their most recent FDD filing, Golden Krust Caribbean Restaurant has 108 total units in the United States, including 106 franchised units and 2 company-owned units. 4 new units were opened in the latest reporting year.
Is Golden Krust Caribbean Restaurant a good franchise to buy?
FranchiseVerdict rates Golden Krust Caribbean Restaurant as a B-grade franchise with a verdict score of 55 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.