Golden Corral Franchise Costs, Fees & FDD

Year Business Began: 1973

Franchising Since: 1986

Headquarters: Raleigh, North Carolina

Estimated Number of Units: 350

Franchise Description: Golden Corral Franchising Systems, Inc. is the franchisor. The franchisor offers franchises to an individual, group of individuals, corporation, limited liability company, or partnership for a family-oriented buffet/grill 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. Golden Corral Restaurants usually are situated in a free-standing building, with accompanying ample parking, and may be located in a rural or urban setting, a suburban location near a shopping mall, or in a strip shopping center. Two restaurant building designs are currently available for new restaurants.
Training Overview: The initial training program for managers requires approximately eight weeks to complete and must be attended by each of the managers (general manager, associate manager-kitchen and associate manager-service). In addition, within four months before the restaurant’s proposed opening, the general manager must work on the grand opening of another Golden Corral system restaurant for a minimum of one full week. The initial training program consists of two components: Tier 1 and Tier 2. Tier 1 (4 weeks) and Tier 2 (4 weeks) are mandatory programs held at Golden Corral certified training restaurants located throughout the country. For new entities, additional practice management is also required. Managers are assigned to a restaurant where they can complete the six-week practice management component. If required by Golden Corral, the manager will attend a one week of classroom training held in Raleigh, North Carolina as well. Approximately 8 to 16 of the restaurant’s employees who are paid on an hourly-wage basis, such as meat cutters, bakers, cooks and servers, must participate in an on-the-job training program. Immediately before, during, and after the opening of the franchisee’s first and second restaurants, the franchisor will make available to the franchisee an “A-Team” comprised of certain personnel of Golden Corral and/or authorized franchisees of other Golden Corral restaurants for temporary employment by franchisees for such length of time as the franchisor, in its sole discretion, deems necessary to assist in training and preparing the non-managerial employees for opening and operating the restaurant. Managers also must attend, at the franchisee’s expense, such refresher courses, additional training programs, and seminars as the franchisor may designate from time to time.

Territory Granted: During the term of the Franchise Agreement, the franchisor will not establish and operate, nor license anyone else to establish and operate, a restaurant under the proprietary marks and the system within a stated distance of the restaurant (the “protected territory”), as described in the Franchise Agreement, except in the types of facilities excluded from the protected territory. The factors affecting the size of the protected territory will be demographic factors, concentration of other businesses in the vicinity, existing and potential restaurant competition, projections of growth in the area, and the economic environment. Except for unique facilities like an airport terminal, military base, etc., all franchisees will receive a protected territory. The protected territory usually will be described as a radius from the Restaurant that will vary from 1/20th of a mile to five miles in large metropolitan locations, and from one to five miles in other localities.

Obligations and Restrictions: Franchisees (or if they are a corporation, limited liability company, partnership, or other entity, an individual principal who has been approved by the franchisor as the operations principal) must devote substantial time, energy, and best efforts to the management, supervision, and operation of the restaurant or, in the case of a developer, to the management, supervision and operation of the business. The restaurant and business must be under the direct supervision of the franchisee or an operations principal. The operations principal must, if so required by the franchisor, own at least a 10% equity interest in the developer and/or franchisee for which he or she serves as the operations principal; must attend and complete Golden Corral’s training program; and must be a person who, in the franchisor’s sole judgment, possesses restaurant operations experience at a level appropriate to manage the number and type(s) of restaurants to be developed by the developer or franchisee. Franchisees must sell or offer for sale only products, food, beverages, and other menu items which meet the franchisor’s standards of quality and quantity, which have been expressly approved for sale in writing by the franchisor, and which have been prepared in accordance with the franchisor’s methods, techniques, and specifications.

Term of Agreement and Renewal: The length of the initial franchise term is from the date of agreement execution through the 15th anniversary date of the restaurant's opening. Two renewal terms of five years each are available, subject to contractual prerequisites.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligations. The franchisor offers a 50% veteran discount of the initial fee to individuals who qualify under VetFran. If the new franchisee is a corporation, limited liability company, or other entity, then the veteran discount applies if one or more eligible veterans own more than 50% of the new franchisee.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$50,000	$50,000
Purchase of Land	$600,000	$2,400,000
Construction, Contractor Site Preparation, Leasehold Improvements	$1,900,000	$4,182,000
Signage	$45,000	$92,800
Furniture and Equipment	$655,000	$1,335,180
POS Activation Fee and Hardware	$4,054	$11,227
Hardware Installation	$4,500	$6,000
Opening Advertising	$10,000	$15,000
Initial Training	$75,050	$176,630
On-Site Assistance Costs	$125,000	$195,000
Inventory	$40,000	$85,000
Insurance	$30,000	$65,000
Additional Funds (first 3 months of operation)	$19,000	$125,000
ESTIMATED TOTAL	$3,557,604	$8,738,837

 
Other Fees

Type of Fee	Amount
Royalty	4% of gross sales.
Opening Advertising	$10,000 - $15,000
Advertising Contributions	2% - 6% of gross sales. Currently 2.4%.
Required Software and Hardware (Point of Sale System, Network and Security, etc.)	Fees vary by program and package. Plus, applicable taxes.
Golden Corral Help Desk	$220.83 per month per location.
Electronic Learning Platform	$335 per quarter per location.
EcoSure Food Safety Program	$262.80 per inspection (minimum of 1 inspection per quarter).
Transfer Fee	Franchisees pay 5% of the then-current initial franchise fee.
Securities Offering	The greater of the franchisor's reasonable costs and expenses to review the securities offering or $10,000.
Renewal	The 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 term multiplied by five.
Audit by Franchisor	Cost of audit.
Late Fee for Overdue Payments	$75
Interest on Overdue Payments	Lesser of 1.5% per month (calculated daily) or maximum legal rate.
Additional Training	$205 (for training materials).
Site Selection	Reasonable expenses (including travel, meals, and lodging).
Costs and Attorneys' Fees	The franchisor’s actual costs and expenses.
Indemnification	The franchisor’s actual loss, costs and expenses.
Relocation Fee	The then-current initial franchise fee less the unamortized portion of the previously paid initial franchise fee.
Review of Proposed New Products or Suppliers	The franchisor’s reasonable costs.
Future Royalty and Advertising Fees	If the franchisor terminates the Franchise Agreement based on the franchisee’s uncured default, franchisees pay the greater of $50,000 or the sum of the royalty fees and advertising/marketing fees the franchisee was obligated to pay for the last 12 months of operation.

The above information has been compiled from the FDD of Golden Corral. Year of FDD: 2025.
Franchise Direct's Disclaimer