How are advertising contributions for Golden Corral payable?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
You must contribute and/or expend an amount which ranges from 2% to 6% of Gross Sales on advertising. Golden Corral will determine, in its sole discretion, both the amount of your contribution as well as its allocation among the funds or, in certain circumstances where no Regional Fund covers your Restaurant location, the allocation between the National Fund and local advertising. We may change the amount of your contribution as well as its allocation at any time, including allocating all contributions to only one recipient, such as the National Fund. Each GCC-owned Restaurant will contribute on the same basis as franchisees. Advertising contributions are payable weekly by electronic funds transfer. The amount of the required contribution/expenditure and its allocation will appear in our Manual or as otherwise specified by us in writing.
Neither the National Fund nor any Regional Fund is a trust fund, and Golden Corral will have no fiduciary responsibility to any franchisee in connection with the collection or use of any National Fund or Regional Fund monies or any other aspect of the funds' operations (Franchise Agreement, Section 11).
As of the date of this disclosure document, franchisees' required advertising contribution to Golden Corral is 2.4% of their Restaurant's Gross Sales, and these
contributions are all allocated to the National Fund. We expect that the same percentage amount and allocation will continue through at least 2024.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–48)
What This Means (2025 FDD)
According to the 2025 Golden Corral FDD, franchisees are required to contribute to advertising, with the amount ranging from 2% to 6% of gross sales. The specific amount and allocation between the National Fund and any Regional Funds are determined by Golden Corral. These advertising contributions are payable weekly through electronic funds transfer. As of the date of the disclosure document, the required advertising contribution is 2.4% of the Restaurant's Gross Sales, and these contributions are allocated to the National Fund. Golden Corral expects that the same percentage amount and allocation will continue through at least 2024.
This means that a prospective Golden Corral franchisee must budget for weekly advertising payments, which are a percentage of their gross sales. The exact percentage can vary, but is currently 2.4%. These funds are collected and managed by Golden Corral, primarily for national advertising efforts. The franchisee does not have direct control over how these funds are spent, but they benefit from the increased brand awareness and marketing campaigns.
It is important to note that Golden Corral retains the right to change the contribution amount and allocation at any time, potentially directing all contributions to a single fund like the National Fund. Franchisees should stay informed about any changes to these requirements, as outlined in the Golden Corral manual or through written communication from the company. The FDD also mentions the possibility of Regional Funds, which could require additional contributions if established in the franchisee's market area.