What is an alternative to the transferee assuming the Golden Corral franchisee's obligations?

Based on the 2025 Golden Corral Franchise Disclosure Document, an alternative to the transferee assuming the franchisee's obligations involves the franchisor's right to operate a Golden Corral restaurant on the premises without the landlord's consent if the franchisee defaults on the lease or Franchise Agreement.

Specifically, Golden Corral retains a continuing right of entry to the premises and the option to operate a Golden Corral restaurant. The franchisor has the right, but not the obligation, to assume the franchisee's interests under the existing lease terms.

Should Golden Corral choose to assume the franchisee's position under the lease, it also gains the right to assign the lease or sublet the premises to a third party who will operate a Golden Corral restaurant. This clause protects Golden Corral's interests by ensuring continued operation of a restaurant at the location even if the original franchisee fails.

This arrangement provides Golden Corral with flexibility in managing locations where franchisees are struggling, allowing for a seamless transition to either direct operation or a new franchisee without disrupting the business or requiring additional approvals from the landlord.