Where may Golden Corral bring an action against a franchisee?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
vices from manufacturers, suppliers, and distributors. Franchisee assigns to Franchisor or its affiliates all of Franchisee's right, title, and interest in and to any and all such Allowances and authorizes Franchisor or its affiliates to collect and retain any or all such Allowances without restriction unless otherwise instructed by the manufacturer, supplier, or distributor. Franchisee also acknolwedges and agrees that Franchisor (or if Franchisor so elects, Franchisor's parent company, Golden Corral Corporation) shall have the right, but not the obligation, to collect and retain all right, benefit, title and interest, if any, in and to all claims and/or causes of action that Franchisee may have now and at any time in the future relating to Franchisee's purchases from any and all distributors, manufacturers, suppliers, wholesalers and vendors supplying foods, beverages and any related food-related and/or beverage-related supplies, materials or services (collectively, "Claims") which, in Franchisor's sole discretion, are or would be more beneficial for Franchisor (or if Franchisor so elects, Franchisor's parent company, Golden Corral Corporation) to prosecute (if at all) for the benefit of the System, however, the foregoing assignment of Claims shall not apply to Franchisee's state law product liability claims or any claims that Franchisee may have arising under original equipment manufacturer (OEM) product warranties or Restaurant-related construction or janitorial/maintenance services.
Source: Item 22 — CONTRACTS (FDD pages 84–85)
What This Means (2025 FDD)
Based on the 2025 Golden Corral Franchise Disclosure Document, Item 22 discusses contracts and mentions several instances where Golden Corral or its parent company, Golden Corral Corporation, may have cause to bring an action against a franchisee.
Specifically, Golden Corral retains the right to collect allowances, rebates, credits, or benefits from manufacturers, suppliers, and distributors based on the franchisee's purchases. The franchisee assigns all rights to these allowances to Golden Corral or its affiliates. Golden Corral also has the right to pursue claims related to the franchisee's purchases from distributors, manufacturers, suppliers, wholesalers, and vendors for food, beverages, and related supplies if it benefits the Golden Corral system. However, this assignment of claims does not include the franchisee's state law product liability claims or claims arising from original equipment manufacturer (OEM) product warranties or restaurant-related construction or janitorial/maintenance services.
Additionally, if the franchisee has a guarantor, the guarantor is responsible for reimbursing Golden Corral for all costs and expenses, including attorney's fees, incurred in connection with the enforcement of the guaranty or the protection of any right or claim Golden Corral may have under the Development Agreement or the Franchise Agreements. These clauses outline various scenarios where Golden Corral may pursue legal action to protect its financial interests and enforce contractual obligations.