On what date did Golden Corral and the Scisms cross-move for summary judgment?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
abandonment of the franchise.
Golden Corral and the Scisms cross-moved for summary judgment on June 20, 2023. On March 27, 2024, the Court granted Golden Corral's motion and dismissed all of the Scisms' claims against Golden Corral with prejudice, concluding that fact discovery had failed to uncover any evidence that Golden Corral had done anything wrong under either the contract between the parties or the New Jersey Franchise Practices Act. Further, the Court concluded that the Scisms had breached their contract with Golden Corral by abandoning their restaurant during the middle of the contract term. The Court awarded Golden Corral
Source: Item 3 — LITIGATION (FDD pages 9–10)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, Golden Corral and the Scisms cross-moved for summary judgment on June 20, 2023. This legal action stemmed from a dispute where the Scisms, a Golden Corral franchisee and its owners, were sued by a lender after defaulting on a note. The Scisms then filed third-party claims against Golden Corral. Golden Corral subsequently filed a separate lawsuit against the Scisms for unpaid franchise fees exceeding $1 million due to the Scisms' abandonment of their franchise.
The court granted Golden Corral's motion for summary judgment on March 27, 2024, dismissing all of the Scisms' claims with prejudice. The court determined that the Scisms had breached their contract by abandoning their restaurant and awarded Golden Corral over $1.1 million in damages.
The Scisms appealed the decision in April 2024, but the appellate court affirmed the District Court's decision in March 2025. Final judgment was entered in Golden Corral's favor for $1.1 million, and the matter is now closed. This litigation history is a required disclosure in the FDD, providing transparency to potential franchisees regarding legal disputes involving the franchisor and its franchisees.