Golden Corral
Date Incorporation: 1985
Franchising Since: 1986
Headquarters: North Carolina
Description: Golden Corral operates a family-oriented buffet style restaurant which features a wide variety of beef, pork, seafood, chicken, cold salads, vegetables, desserts at an in-store display bakery, and other food and beverage items for lunch, dinner, weekend breakfast (daily breakfast offered in some restaurants), and snacks.
Franchise Offer: Franchises are offered for the operation of three different designs of Golden Corral family-oriented steakhouse and buffet style restaurants, depending on the land requirements and building size of the restaurant.
Financial Assistance: The franchisor does not provide any direct or indirect financing.
Training and Assistance: Golden Corral's initial training program for managers requires approximately 12 weeks to complete, and must be attended by each of the managers (general manager, associate manager-kitchen and associate manager-service) prior to the opening of the restaurant. In-store training is located at an existing Golden Corral restaurant, and classroom training is located at the GC Center in Raleigh, North Carolina.
Territory: The franchisee is granted an exclusive territory.
Term of Agreement and Renewal: The length of the franchise term is 15 years, with two renewal terms of 5 years each.
Obligations and Restrictions: The franchisee must devote full time, energy, and best efforts to the management and operation of the restaurant. The restaurant and business must be under the direct supervision of the franchisee or the operations principal.
Total Number of Units: 480 outlets at the end of 2008
Total Number of franchises Units: 380 franchised outlets at the end of 2008
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Purchase of Land | $900,000 | $2,300,000 |
| Construction, Contractor Site Preparation, Leasehold Improvements | $1,000,000 | $2,400,000 |
| Signage | $45,000 | $88,000 |
| Furniture and Equipment | $640,000 | $720,000 |
| Opening Advertising | $10,000 | $15,000 |
| Initial Training | $52,300 | $159,900 |
| On-Site Assistance Costs | $23,800 | $80,400 |
| Inventory | $45,000 | $79,000 |
| Insurance | $12,000 | $22,500 |
| Additional Funds (Estimated expenditures during the first 3 months of operation) | $19,000 | $110,000 |
| TOTAL | $2,797,100 | $6,024,800 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty | 4% of Gross Sales |
| Opening Advertising | $ 10,000 - $ 15,000 |
| Advertising Contributions | 2%-6% of Gross Sales |
| Transfer | Franchisees pay 5% of the then-current initial franchise fee. Developers pay the greater of 5% of the development fee paid by the developer or franchisors costs to review the proposed transfer |
| Securities Offering | The greater of the franchisors reasonable costs and expenses to review the securities offering or $10,000 |
| Renewal | Then-current initial franchise fee applicable to the Restaurant design being renewed divided by number of years in the initial term under the then- current franchise agreement multiplied by five |
| Audit | Cost of Audit |
| Late Fee for Overdue Payments | $75.00 |
| Interest on Overdue Payments | Lesser of 1.5% per month (calculated daily) or maximum legal rate |
| Additional Training | $700 per additional manager plus the cost of training materials which are currently $225 |
| Site Selection | Reasonable expenses (including travel, meals, and lodging) |
| Costs and Attorneys' Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Relocation Fee | The then current initial franchise fee less unamortized portion of previously paid initial franchise fee |
| Approval of New Products or Suppliers | Will vary depending on circumstances |
| Operation and Maintenance of Computer System | Varies depending on agreements selected. |
Date of FDD: 16/04/2008
The above information has been taken from the UFOC/FDD of Golden Corral
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