What methods of payment can Golden Corral require for weekly fees?
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, Golden Corral has the right to specify how franchisees make weekly payments for fees. Golden Corral can require that franchisees make these payments to Golden Corral or to a specified bank account through electronic fund transfer, preauthorized auto-draft arrangement, or any other method Golden Corral specifies in writing.
These weekly payments are based on the gross sales of the preceding week and are due by Monday for the week ending on the previous Wednesday, unless Golden Corral designates otherwise in writing. Franchisees must also report their gross sales to Golden Corral by telephone within two days after the week ends, following the format and manner that Golden Corral prescribes in its manuals or in writing.
Franchisees must ensure they have sufficient funds in their designated bank account to cover these payments and provide all necessary information and authorizations to allow electronic fund transfers or auto-draft arrangements. The franchisee is responsible for any expenses associated with these authorizations and payments. Failure to make timely payments results in a late fee of $75.00 and interest on the overdue amount at a rate of 1-1/2% per month, or the maximum rate permitted by law, whichever is less.