What happens to the earnings of the Golden Corral National Fund?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Golden Corral anticipates that all contributions to and earnings of the National Fund will be expended for advertising and/or promotional purposes during the taxable year within which the contributions are made. If, however, excess amounts remain in the National Fund at the end of the taxable year, Golden Corral will expend in the following taxable year(s) monies first out of accumulated earnings from previous years, next out of earnings in the current year, and finally from contributions. Any deficits will be paid from future contributions (Franchise Agreement, Section 11.2.5).
-
- The National Fund is not and will not be an asset of Golden Corral. An independent certified public accountant selected by Golden Corral will review the statement of operations of the National Fund maintained by Golden Corral annually, which statement will be made available to you, upon reasonable notice (Franchise Agreement, Section 11.2.6).
-
- Although Golden Corral intends the National Fund to be of perpetual duration, Golden Corral maintains the right to terminate the National Fund. The National Fund may not be terminated, however, until all monies in the National Fund have been expended for advertising and/or promotional purposes or returned to contributors on the basis of their respective contributions (Franchise Agreement, Section 11.2.7).
During the fiscal year ending January 1, 2025, we estimate that 78.3% of the National Fund's expenditures were for media advertising; 11.9% were for creative and production expenses for television commercials and promotional materials; 9.1% were for agency retainers and fees; 0.6% were for national charitable events/sponsorship(s) (Military Appreciation Monday) and Convention expenses; and 0% were for administrative fees.
During our fiscal year ending January 1, 2025, neither Golden Corral nor any of our affiliates received any payment for providing goods or services to the National Fund.
No National Fund fees were used for soliciting the sales of franchises during the fiscal year ending January 1, 2025.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–48)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, the franchisor anticipates that all contributions to and earnings of the National Fund will be used for advertising and promotional purposes during the taxable year in which the contributions are made. If there are excess amounts in the National Fund at the end of the taxable year, Golden Corral will use accumulated earnings from previous years first, then earnings from the current year, and finally from contributions in the following taxable year(s). Any deficits will be paid from future contributions.
The National Fund is not an asset of Golden Corral, and an independent certified public accountant selected by Golden Corral will review the fund's statement of operations annually. This statement will be available to franchisees upon reasonable notice. Golden Corral intends for the National Fund to be of perpetual duration but retains the right to terminate it. However, the National Fund cannot be terminated until all monies have been used for advertising and/or promotional purposes or returned to contributors based on their respective contributions.
During the fiscal year ending January 1, 2025, the FDD states that 78.3% of the National Fund's expenditures were for media advertising; 11.9% were for creative and production expenses for television commercials and promotional materials; 9.1% were for agency retainers and fees; and 0.6% were for national charitable events/sponsorship(s) (Military Appreciation Monday) and Convention expenses. No National Fund fees were used for soliciting the sales of franchises during the fiscal year ending January 1, 2025, and neither Golden Corral nor its affiliates received any payment for providing goods or services to the National Fund during the fiscal year ending January 1, 2025.