What is the definition of 'Operations Principal' in the Golden Corral franchise agreement?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
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Location and have such plans sealed by Franchisee's architect/engineer; (f) to obtain financing as needed for acquisition, construction and/or reimaging of the building and the purchase of all furniture, fixtures and equipment for the Approved Location; and, (g) to construct and/or reimage the Restaurant upon the Approved Location.
6. OPERATIONAL DUTIES OF FRANCHISEE
- 6.1 Attending Training Programs: Prior to submitting a site for approval by Franchisor, Franchisee (or, if Franchisee is a legal entity such as a corporation or a limited liability company, the individual approved by Franchisor as the Operations Principal of Franchisee referred to in Section 16.1) shall attend the franchise orientation program established by Franchisor. Thereafter, and prior to the opening of the Restaurant, the managers designated by Franchisee shall attend and complete, to Franchisor's satisfaction, the training program for managers offered by Franchisor. Franchisor shall take into consideration the background and experience of the person attending the training programs and whether such person has previously received training in the Franchisor's System. The training program for managers shall be provided at Franchisor's training center and/or in a company-owned restaurant of Golden Corral Corporation or at such other locations as Franchisor may designate (such as a franchisee-owned restaurant that Franchisor has approved for providing such training programs). Franchisor shall provide training materials for such initial training program for each of Franchisee's initial managers.
Source: Item 22 — CONTRACTS (FDD pages 84–85)
What This Means (2025 FDD)
According to the 2025 Golden Corral FDD, the Operations Principal is a key individual who manages the franchised business. If the franchisee is a legal entity, such as a corporation or LLC, the Operations Principal is the specific individual approved by Golden Corral to oversee the franchise.
The Operations Principal must attend Golden Corral's franchise orientation program before a site is approved. If an approved Operations Principal dies, becomes incapacitated, terminates their role, or stops dedicating substantial time and effort to the restaurant's operation, the Area Developer must find a replacement within three months. This substitute Operations Principal needs to be approved by Golden Corral and may be required to own at least 10% equity in the Area Developer entity.
Golden Corral requires the Operations Principal to have sufficient restaurant operations experience to manage the number and types of restaurants being developed. They must also complete Golden Corral's training program for certified managers to the franchisor's satisfaction. This ensures that the person in charge has the skills and knowledge to uphold Golden Corral's standards.