Does Golden Corral currently have more than one Regional Fund in existence?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
We currently only have 1 Regional Fund in existence which is for the Territory of Puerto Rico. We may increase the number of Regional Funds to include new market areas in which aggregate projected contributions based on an established percentage of Gross Sales are expected to exceed the cost of buying a set minimum number of targeted rating points in broadcast television advertising within the market. If a Regional Fund for your region is established at any time during the term of the Franchise Agreement, you must become a member no later than the later of 90 days after you open your Restaurant or the date on which the Regional Fund commences operation. (Franchise Agreement, Section 11.3)
Golden Corral's contribution allocation may vary among franchisees, depending on whether a Regional Fund is required for the market area in which the franchised Restaurant operates. For example, assuming a required franchisee advertising contribution of 2.6%, Golden Corral has the right to allocate the contribution 2.4% to the National Fund and 0.2% to either the Regional Fund, if it exists for the franchisee's Restaurant, or to local advertising. In addition, Golden Corral permits the formation within a market area of a separate entity among Golden Corral and the franchisees operating Restaurants within such market area that will serve as the Regional Fund for that market area and be in lieu of a Golden Corralestablished Regional Fund, subject to certain criteria established by Golden Corral. If an entity is established to serve as the Regional Fund, the members may agree to give that Regional Fund entity the power to assess supplemental advertising contributions on its members, and any such supplemental assessment will be in addition to the amount required by Golden Corral and allocated to the Regional Fund. Golden Corral will not require you to pay any supplemental contribution that your Regional Fund entity may impose but, if you do not make the supplemental contribution, you may not be permitted to vote in the voluntary Regional Fund's deliberations if the organizational documents for that entity do not so provide.
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 Franchise Disclosure Document, Golden Corral currently has one regional fund. This fund is specifically for the territory of Puerto Rico. However, Golden Corral retains the option to establish additional Regional Funds in new market areas if the projected contributions, calculated as a percentage of Gross Sales, are anticipated to exceed the cost of broadcast television advertising in that market.
If a Regional Fund is established for a franchisee's region during the term of their Franchise Agreement, the franchisee is obligated to become a member. This membership must occur no later than 90 days after the restaurant opens or when the Regional Fund begins operation, whichever is later. Franchisees should be aware that their advertising contribution allocation may vary depending on whether a Regional Fund exists in their market area.
For example, if a franchisee's required advertising contribution is 2.6% of gross sales, Golden Corral can allocate 2.4% to the National Fund and 0.2% to the Regional Fund (if one exists) or to local advertising. Golden Corral also allows franchisees within a market area to form their own entity to serve as the Regional Fund, subject to Golden Corral's approval. This franchisee-established fund can assess supplemental advertising contributions, which are in addition to the amount required by Golden Corral. While franchisees are not required to pay these supplemental contributions, failure to do so may impact their voting rights within the Regional Fund.