Golden Corral
Golden Corral offers family-oriented steakhouse and buffet-style restaurants. Known for variety and value, it operates in the casual dining restaurant industry.
About Golden Corral
Golden Corral is an American all-you-can-eat buffet and grill chain. It is a privately held company headquartered in the U.S. city of Raleigh, North Carolina, with locations in 43 U.S. states and Puerto Rico.
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Golden Corral franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to open a Golden Corral restaurant ranges widely, from $3,557,604 to $8,738,837 for different restaurant designs. This range includes costs such as the initial franchise fee and development fees, but specific details can vary based on factors like site approval and building design [p.22, p.1, p.23].
What is the initial franchise fee?
The initial franchise fee is $50,000 [p.11]. This amount can vary if a Development Agreement is in place or if certain conditions are met, but as of the information provided, it is set at $50,000 [p.11].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4% of gross sales [p.138], and franchisees must also pay advertising fees, with revenue from these fees recognized when collection is probable [p.299]. Future royalty and advertising fees, in case of termination for default, amount to at least $50,000 or the sum of monthly fees during the 12 months preceding termination [p.170].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is fifteen (15) years from the date the Restaurant is first opened for business [p.134]. Renewal is possible as the agreement will automatically renew on an annual basis by payment of the full then current Monthly Service Fee not later than January 1st of any such renewal year, unless GCC advises unwillingness to renew [p.207]. However, note that upon renewal, the terms may differ, including a higher percentage royalty fee and advertising contribution [p.135].
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement under any grounds permitted by state law, and it can also make changes to its business model without your consent, which might require additional investments or harm your business [p.281, p.3]. However, termination for no reasonable cause is unlawful in Virginia under the Virginia Retail Franchising Act [p.280].
What financial requirements — net worth and liquid capital — do I need to qualify?
The minimum net worth and liquidity required to become an area developer, as well as other financial criteria, are determined by the Franchisor's current requirements. These standards must be met to demonstrate adequate financial resources and capital to comply with the Development Schedule [p.106]. However, specific numerical values for net worth or liquid capital are not provided in these excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. Your Protected Territory is not exclusive because Golden Corral retains rights to Non-Traditional Sites and can establish other restaurants within your Development Area. You may face competition from other franchisees, outlets owned by Golden Corral, or other channels of distribution or competitive brands controlled by the company [p.52].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for the Operations Principal through a franchise orientation program [p.243] and manager training programs [p.142]. Additionally, the franchisor offers periodic and continuing advisory assistance in the operation and promotion of the franchised business [p.137].
How many franchised outlets are there, and how many have closed or been terminated?
At the end of the fiscal year on January 1, 2025, there were a total of 348 franchised Golden Corral Restaurants in operation [p.65]. The FDD does not specify the number of closed or terminated outlets [p.84], only providing information about area developers whose agreements were terminated during the fiscal year ending January 1, 2025.
Does the franchisor share any financial performance or earnings information?
The franchisor, Golden Corral, does not make any financial performance representations except for the historic information provided in the Tables. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance upon request [p.74]. This isn't specified in the excerpts for new franchises or general earnings projections.
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling specific goods or services beyond what Golden Corral authorizes, but they reserve the right to change authorized items. For supplies, you may have to purchase from suppliers designated by the franchisor, though there is a list of approved sources and standards set by them [p.243]. This isn't specified in the excerpts for all types of supplies, only that exclusivity applies where comparable quality alternatives are available elsewhere [p.58].