What is the late fee for overdue payments to Golden Corral?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
amount equal to four percent (4%) of the gross sales of the Restaurant, as defined in Section 4.7 hereof.
- 4.3 Marketing Fee: Franchisee shall also expend or contribute weekly on advertising, two percent (2%) of its gross sales or such greater amount, up to a maximum of six percent (6%), in the manner to be determined by Franchisor, as described in Section 11 hereof. Franchisee shall make all payments to Franchisor or to a National Fund or Regional Fund (as defined in Section 11. hereof) required by Sections 4.2 and 4.3 hereof on the gross sales during the preceding week.
- 4.4 Method of Payment of Fees: Franchisor shall have the right to require in the Manuals or otherwise in writing that Franchisee make such payments to Franchisor or to a bank account specified by Franchisor on a weekly basis by electronic fund transfer, preauthorized auto-draft arrangement, or such other means as Franchisor may specify from time-to-time in writing. Such weekly payments shall be paid by Monday for the week ending on the preceding Wednesday, or as otherwise designated by Franchisor in writing. Franchisee shall report its gross sales for such week to Franchisor by telephone within two (2) days after the end of such week in the form and manner prescribed by Franchisor from time to time in the Manuals or as otherwise prescribed in writing. Franchisee agrees to maintain sufficient funds in its bank account designated for such payments to cover all amounts payable. Franchisee shall furnish Franchisor, Franchisor's bank, and any other recipients of payment with such information and authorizations as may be necessary to permit such persons to make withdrawals by electronic fund transfer or auto-draft arrangement. Franchisee shall bear all expenses, if any, associated with such authorizations and payments.
- 4.5 Late Fees: All weekly payments made pursuant to this Section 4.5 shall be submitted to Franchisor together with any reports or statements required under Section 10.2 hereof. Any payment or report not actually received by Franchisor or any other recipient on or before the date due shall be overdue. If any payment is overdue, Franchisee shall pay to Franchisor, immediately upon demand, in
Source: Item 22 — CONTRACTS (FDD pages 84–85)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, if a franchisee's payment or report is not received by the due date, it is considered overdue. In addition to the overdue amount, Golden Corral will charge a late fee of $75.00, payable immediately upon demand.
Furthermore, Golden Corral charges interest on the overdue amount from the date it was due until the payment is received. The interest rate is 1.5% per month, or the maximum rate permitted by law, whichever is less.
This late fee and interest are in addition to any other remedies that Golden Corral may pursue for the overdue payment. Franchisees should ensure timely payments to avoid these additional costs and potential further actions from the franchisor.