What must a Golden Corral Area Developer do with a lease before executing it?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to Area Developer's acquisition by lease or purchase of any site for a Restaurant but within ninety (90) days after the execution of this Agreement, Area Developer shall complete and submit to Franchisor, in form(s) as may be specified by Franchisor, a feasibility study regarding Area Developer's proposed costs of development, construction and operation of a Golden Corral restaurant on the Proposed Site, the description of the proposed site and such information or materials as Franchisor may reasonably require, together with a letter of intent or other evidence satisfactory to Franchisor which confirms Area Developer's favorable prospects for obtaining the site. Franchisor shall have up to sixty (60) days after receipt of the feasibility study, the description of the proposed site and other information and materials to approve or disapprove, in its sole discretion, each proposed site for a Restaurant. Notwithstanding anything contained in this Development Agreement to the contrary, Area Developer must acquire by lease or purchase a location approved by Franchisor at the earlier of one hundred eighty (180) days after the execution of this Agreement or six (6) months before the scheduled opening date of the first Restaurant as set forth in the Development Schedule, and
thereafter must acquire a location approved by Franchisor not less than six (6) months prior to the date each respective Restaurant is required to be opened pursuant to the Development Schedule.
Source: Item 22 — CONTRACTS (FDD pages 84–85)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, an Area Developer must submit a feasibility study to Golden Corral regarding the proposed site, development, construction, and operation costs before acquiring the site by lease or purchase. This study must be submitted within 90 days after the execution of the Development Agreement. The feasibility study should include a description of the proposed site and any other information or materials that Golden Corral may reasonably require, along with a letter of intent or other evidence confirming the Area Developer's favorable prospects for obtaining the site.
Golden Corral then has up to 60 days after receiving the feasibility study, site description, and other materials to approve or disapprove the proposed site at its sole discretion. The Area Developer must acquire a location approved by Golden Corral either 180 days after the execution of the agreement or six months before the scheduled opening date of the first restaurant, whichever is earlier. Subsequently, for each additional restaurant, the Area Developer must acquire an approved location at least six months before the scheduled opening date.
This process ensures that Golden Corral maintains control over site selection and can assess the viability of each proposed location before the Area Developer commits to a lease or purchase. This protects both the franchisee and the brand by ensuring that new locations meet the franchisor's standards and have a reasonable chance of success. Failing to adhere to this development schedule constitutes a default under the Development Agreement.