What is Exhibit F related to for Golden Corral franchisees?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
ocument, we have not established any such programs.
Golden Corral is not an approved supplier for any Item. Our parent, GCC, is an approved supplier for a variety of restaurant equipment, fixtures, furnishings, signs, and computer hardware and software services. For those Items you are purchasing from GCC's Coastal division, we expect that you will sign Coastal's Equipment Purchase and Sale Agreement (Exhibit F) during the construction phase of your Restaurant.
In fiscal year ending January 1, 2025, franchisees purchased $6,992,663 of Restaurant equipment and other Items from GCC (including Coastal), which sum represents 5.0% of GCC's total revenues of $140,559,281 for the 2024 fiscal year, based on GCC's consolidated financial statements and internal accounting records. GCC also is an approved supplier of ancillary services pertaining to computer hardware and software, and received revenues of $1,500,597, or 1.1% of its total revenues, from franchisee payments for these services in the fiscal year ending January 1, 2025. Finally, GCC is the lessor or sub-lessor of certain franchised Restaurant premises. In the fiscal year ending January 1, 2025, GCC re
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, Exhibit F is Coastal's Equipment Purchase and Sale Agreement. This agreement is expected to be signed by franchisees during the construction phase of their Golden Corral restaurant when purchasing restaurant equipment, fixtures, furnishings, signs, and computer hardware and software services from GCC's Coastal division. GCC, Golden Corral's parent company, is an approved supplier for these items.
In the fiscal year ending January 1, 2025, Golden Corral franchisees purchased $6,992,663 of restaurant equipment and other items from GCC, including Coastal, which represented 5.0% of GCC's total revenues of $140,559,281 for the 2024 fiscal year. GCC also received $1,500,597, or 1.1% of its total revenues, from franchisee payments for ancillary services pertaining to computer hardware and software. Additionally, GCC received $1,816,717 from rent payments by franchisees in the fiscal year ending January 1, 2025.
This indicates that a significant portion of a new Golden Corral franchisee's initial investment and ongoing expenses may involve purchases from GCC and its Coastal division. Therefore, understanding the terms of Coastal's Equipment Purchase and Sale Agreement (Exhibit F) is crucial for franchisees during the construction phase. Franchisees should carefully review this agreement to understand their obligations and the costs associated with purchasing equipment and services from GCC's Coastal division.