Golden Krust Caribbean Restaurant
Bottom line
- Total investment $213K – $776K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.3M/year.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 25 loans (below the industry average).
- No 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Golden Krust Caribbean Restaurant unit return on the cash you put in?
Unlevered ROIC · per unit
38%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Golden Krust Caribbean Restaurant units return on equity?
Equity IRR · 5-yr
42.9%
5.95× MOIC
Year-1 DSCR
2.03×
EBITDA ÷ debt service
Equity required
$2.9M
on $11.3M purchase
Total debt
$8.4M
SBA $5.0M + senior + seller note
Overview
About
Golden Krust franchisees operate Caribbean quick-service restaurants featuring jerk chicken, beef patties, rice-and-peas, and tropical beverages, primarily serving walk-in and carryout customers in urban markets. Day-to-day operations involve food preparation, inventory management, staffing, and marketing within limited geographic footprints without territorial protection.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Score breakdown · what drove the 54 / 100 rating
- 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
- 06MINORModest average unit volume ($1.33M) against high investment ceiling suggests inconsistent unit performance and potential for below-average returns
- 07HIGHGoing Concern status (False) indicates franchisor financial instability or operational red flags flagged by accountants
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
72 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Golden Krust Caribbean Restaurant · FDD (2024) PDF