Does the Golden Corral Development Agreement provide exclusive remedies?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon such default, Franchisor, in its discretion, may terminate this Development Agreement and all rights granted hereunder without affording Area Developer any
opportunity to cure the default, effective immediately upon receipt by Area Developer of written notice.
- 6.4. No Right to Establish or Operate New Restaurants: Upon termination of the Development Agreement, Area Developer shall have no right to establish or operate any Golden Corral restaurants for which a Franchise Agreement has not been executed by Franchisor at the time of termination. Franchisor shall be entitled to establish, and to license others to establish, Golden Corral restaurants in the Development Area except as may be otherwise provided under any Franchise Agreement which has been executed between Franchisor and Area Developer.
- 6.5. Termination of Area Development Agreement Because of Franchise Agreement Default: No default under this Development Agreement shall constitute a default under any Franchise Agreement between the parties hereto. However, default under this Development Agreement shall constitute default under any and all other Development Agreements between the parties hereto.
Source: Item 22 — CONTRACTS (FDD pages 84–85)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Golden Corral Development Agreement does not explicitly state that remedies are exclusive. However, it does outline specific actions Golden Corral can take in the event of an Area Developer's default.
In the event of a default by the Area Developer under the lease or Franchise Agreement, Golden Corral has the right to enter the premises without the landlord's consent. Golden Corral can then operate a restaurant, assume the Area Developer's interests under the existing lease terms, and assign the lease or sublet the premises to a third party who will operate a Golden Corral restaurant.
Furthermore, Golden Corral can withhold approval of a site or the issuance of a Franchise Agreement if an existing Golden Corral restaurant operated by the Area Developer does not meet the minimum standards for cleanliness, service, quality, or the required number of certified managers. If the Area Developer fails to adhere to the Development Schedule, it constitutes a default under the Development Agreement, which may lead to termination of the agreement without an opportunity to cure the default. Upon termination, the Area Developer loses the right to establish or operate new Golden Corral restaurants for which a Franchise Agreement has not been executed. Golden Corral retains the right to establish or license others to establish restaurants in the Development Area, except as provided under any existing Franchise Agreement.