Where must the Golden Corral franchisee operate the restaurant?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
5.2.7 A provision that provides that upon Franchisee's default under the lease or under the Franchise Agreement, Franchisor shall without the landlord's further consent have a continuing right of entry into the premises, the right to operate a Golden Corral restaurant therein, the right but not the obligation to assume Franchisee's interests under the existing terms, conditions and covenants of the lease, and should Franchisor assume Franchisee's position under the lease, the right to assign the lease or sublet the premises to a third party which will operate on the premises a Golden Corral restaurant.
5.3 Pre-Conditions to Constructing and Reimaging Restaurant Premises: Before commencing any construction, reimaging or renovation of the Restaurant, Franchisee, at its expense, shall comply, to Franchisor's satisfaction, with all of the following requirements:
5.3.1 Franchisee shall employ a licensed architect to prepare and seal the site-adapted plans and specifications for construction and/or reimaging of the Restaurant, referred to in Section 5.4, and Franchisee shall submit to Franchisor a statement identifying the architect;
5.3.2 Franchisee shall submit to Franchisor, for Franchisor's approval, the site-adapted plans and specifications adapting Franchisor's then-current generic plans and specifications to Franchisee's location and to local, state, and federal laws, regulations, and ordinances.
When approved by Franchisor, such site-adapted plans and specifications shall thereafter not be changed or modified without the prior written consent of Franchisor;
5.3.3 Franchisor shall provide Franchisee written notice of approval or disapproval of the site-adapted plans and specifications within sixty (60) days after receipt of such plans and specifications from Franchisee;
5.3.4 Franchisee shall employ a qualified, reputable, properly-licensed general contractor who is not disapproved by Franchisor to supervise construction and/or reimaging of the Restaurant and completion of all improvements, and Franchisee shall submit to Franchisor a statement identifying the general contractor and all subcontractors and consultants providing services in connection with such construction and/or reimaging;
Source: Item 22 — CONTRACTS (FDD pages 84–85)
What This Means (2025 FDD)
According to the 2025 Golden Corral FDD, Section 5.2.7 of the franchise agreement discusses the premises where the Golden Corral restaurant will operate. It states that the franchise agreement should include a provision that gives Golden Corral certain rights regarding the premises if the franchisee defaults on their lease or the franchise agreement. Specifically, Golden Corral has the right to enter the premises, operate a Golden Corral restaurant there, and assume the franchisee's lease under its existing terms without needing the landlord's consent.
Furthermore, if Golden Corral assumes the franchisee's lease, they have the right to assign the lease or sublet the premises to a third party who will operate a Golden Corral restaurant. This clause ensures that Golden Corral can maintain a presence in the location even if the original franchisee fails.
Additionally, before any construction, reimaging, or renovation of the restaurant, the franchisee must comply with several requirements to Golden Corral's satisfaction. These include employing a licensed architect to prepare site-adapted plans, submitting these plans to Golden Corral for approval, and employing a qualified general contractor who is not disapproved by Golden Corral to supervise the construction. This process ensures that the restaurant's design and construction meet Golden Corral's standards and comply with all applicable laws and regulations.