What is the definition of the 'Approved Location' for a Golden Corral franchise?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
uality, cleanliness, appearance, and service, and the necessity of opening and operating the business franchised hereunder in conformity with Franchisor's standards and specifications;
NOW, THEREFORE, the parties, in consideration of the undertakings and commitments of each party to the other party set forth herein, hereby agree as follows:
1. GRANT
- 1.1 Grant: Franchisor hereby grants to Franchisee, upon the terms and conditions herein contained, the right and franchise, and Franchisee undertakes the obligation, to operate the Restaurant and to use solely in connection therewith the Proprietary Marks and Syste
Source: Item 22 — CONTRACTS (FDD pages 84–85)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, the 'Approved Location' is initially undefined in the franchise agreement but is later described in Section 1.2 of the agreement. The agreement grants the franchisee the right and obligation to operate the restaurant using Golden Corral's proprietary marks and system exclusively at this 'Approved Location'.
This means that before a Golden Corral franchisee can begin operations, the specific location must be formally approved by the franchisor. This approval is a critical step, as the franchisee's rights to operate under the Golden Corral brand are tied to this specific location. The physical address of the approved location will be written into Section 1.2 of the franchise agreement.
Furthermore, Golden Corral franchisees are restricted from operating the restaurant outside of the approved location. This clause ensures that the franchisee focuses their efforts on the designated site and upholds the brand's standards at that specific location. Any deviation from this location would be a breach of the franchise agreement.
Additionally, Item 16.3 of the FDD discusses non-compete clauses, which restrict a franchisee from operating a similar restaurant within a certain radius of the 'Approved Location' after the franchise agreement expires or is terminated. This further emphasizes the importance of the 'Approved Location' as a defined territory with specific competitive restrictions.