Who must the Golden Corral franchisee's insurance policy protect?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
s not to transmit or cause any other party to transmit advertisements or solicitations
by telephone, email, text message, instant message, social networking website, VoIP, streaming media, or any other electronic medium without first obtaining Franchisor's written consent as to (a) the content of the advertisements or solicitations and (b) the type of media intended to be used.
12. INSURANCE
- 12.1 Franchisee's Insurance: Franchisee shall procure, prior to the commencement of any operations under this Agreement, and maintain in full force and effect during the term of this Agreement, at Franchisee's expense, an insurance policy or policies protecting Franchisee, Franchisor, and Golden Corral Corporation and their officers, directors, shareholders, partners, and employees, against demand or claim with respect to any loss, liability, personal and bodily injury, death, property damage, or expense whatsoever, arising or occurring upon or in connection with the franchised business. Such policy or policies shall be written by an insurance company satisfactory to Franchisor in accordance with standards and specifications set forth in the Manuals or otherwise in writing, and shall include, at a minimum, (except as additional coverages and higher policy limits may reasonably be specified by Franchisor from time to time in the Manuals or otherwise in writing) the following:
- 12.1.1 Comprehensive general liability insurance, including broad form comprehensive general liability endorsement, product liability and independent contractors coverage and comprehensive automobile liability coverage, for owned, hired and non-owned vehicles used by the franchised business, for bodily injury, personal injury, and
Source: Item 22 — CONTRACTS (FDD pages 84–85)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, the franchisee's insurance policies must protect the franchisee, Golden Corral (the franchisor), and Golden Corral Corporation, including their officers, directors, shareholders, partners, and employees. This coverage extends to any demand or claim related to loss, liability, personal and bodily injury, death, property damage, or expenses arising from the franchised business.
The required insurance coverage must be in effect before the commencement of any operations under the Franchise Agreement and must be maintained throughout the term of the agreement at the franchisee's expense. The insurance policies must be written by an insurance company that is satisfactory to Golden Corral and must adhere to the standards and specifications outlined in the manuals or in writing.
Specifically, the franchisee's insurance policies must provide primary coverage to Golden Corral and Golden Corral Corporation. This means that in the event of a claim, the franchisee's insurance will be the first to respond, before any insurance policies independently secured by Golden Corral or Golden Corral Corporation. This requirement ensures that Golden Corral is protected from potential liabilities associated with the franchisee's business operations. The franchisee is also responsible for making their own independent judgment regarding their insurance needs beyond what is specified in the agreement.