What kind of records must a Golden Corral franchisee maintain?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
10. ACCOUNTING AND RECORDS
- 10.1 Maintaining Franchisee Records: During the term of this Agreement, Franchisee shall maintain and preserve, for at least seven (7) years from the date of their preparation, full, complete and accurate books, records, and accounts in accordance with generally accepted accounting principles and in the form and manner prescribed by Franchisor from time-to-time in the Manuals or otherwise in writing. Franchisee shall record all sales at or from the Restaurant using cash registers or other point-of-sale equipment and computer software meeting Franchisor's standards and specifications and approved by Franchisor. Franchisee shall maintain and preserve all cash register tapes and/or computer records for at least two (2) years.
- 10.2 Submission of Monthly Reports: Franchisee shall submit to Franchisor, no later than the tenth (10th) of each month during the term of this Agreement, after the opening of the Restaurant, an unaudited profit and loss statement, in the form prescribed by Franchisor, accurately reflecting all gross sales during the preceding month and such other data or information as Franchisor may require. Each profit and loss statement shall be signed by Franchisee attesting that it is true and correct to the best of Franchisee's knowledge.
- 10.3 Submission of Annual Financial Reports: Franchisee shall, at Franchisee's expense, submit to Franchisor an audited profit and loss statement and audited balance sheet prepared in accordance with generally accepted accounting principles, within one hundred twenty (120) days after the end of each fiscal year during the term hereof, showing the results of operations of the franchised business during said fiscal year.
- 10.4 Submission of Franchisee Tax Filings: Franchisee shall submit to Franchisor, within thirty (30) days of the filing of Franchisee's annual federal income tax return, a copy of Franchisee's federal income tax return and copies of monthly sales tax returns pertaining to the franchised business for the preceding fiscal year.
Source: Item 22 — CONTRACTS (FDD pages 84–85)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, franchisees are required to maintain and preserve full, complete, and accurate books, records, and accounts for at least seven years from the date of their preparation. These records must adhere to generally accepted accounting principles and be in the form and manner prescribed by Golden Corral in its manuals or in writing. Franchisees must record all sales using cash registers or point-of-sale equipment and computer software that meet Golden Corral's standards and specifications. They must also maintain and preserve all cash register tapes and/or computer records for at least two years.
In addition to these general record-keeping requirements, Golden Corral franchisees must submit monthly and annual financial reports to Golden Corral. Specifically, franchisees must submit an unaudited profit and loss statement no later than the tenth of each month, accurately reflecting all gross sales during the preceding month and any other data or information that Golden Corral may require. This profit and loss statement must be signed by the franchisee, attesting to its accuracy.
Furthermore, franchisees are required to submit an audited profit and loss statement and an audited balance sheet within 120 days after the end of each fiscal year. These financial statements must be prepared in accordance with generally accepted accounting principles. Franchisees must also submit copies of their annual federal income tax return and monthly sales tax returns pertaining to the franchised business within 30 days of filing their federal income tax return. These detailed accounting and record-keeping requirements ensure that Golden Corral franchisees maintain transparent and accurate financial records, allowing Golden Corral to monitor the financial health of its franchise locations and ensure compliance with accounting standards.