Does the Golden Corral agreement allow for a jury trial?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
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- I am aware of the fact that the Franchise Agreement Section 23.5 and Area Development Agreement, Section 13.5 provide that both Golden Corral and I have agreed to (i) waive a jury trial for any dispute, as well as the right to seek punitive or exemplary damages against the other; and (ii) significantly reduce the time within which to assert a claim against the other in any adjudicatory forum.
Source: Item 23 — RECEIPTS (FDD pages 85–304)
What This Means (2025 FDD)
According to the 2025 Golden Corral Franchise Disclosure Document, the standard agreement includes a waiver of the right to a jury trial. Specifically, prospective franchisees acknowledge that they are aware that Section 23.5 of the Franchise Agreement and Section 13.5 of the Area Development Agreement stipulate that both Golden Corral and the franchisee agree to waive a jury trial for any dispute. This means that any legal disputes arising between Golden Corral and a franchisee would be resolved by a judge rather than a jury.
However, this jury trial waiver may not be enforceable in all states. For example, the North Dakota Disclosure Addendum explicitly states that requiring North Dakota franchisees to consent to the waiver of a trial by jury is considered unfair, unjust, or inequitable. Similarly, the exhibit regarding certification is not applicable to prospective franchisees in several states, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, suggesting potential variations in the enforceability of certain clauses based on state laws.
Therefore, while the standard Golden Corral franchise agreement contains a jury trial waiver, its actual enforceability depends on the franchisee's location and the specific state laws governing franchise agreements. Prospective franchisees should consult with legal counsel to understand the implications of this waiver in their specific state and how it might affect their rights in case of a dispute with Golden Corral.