How much in damages did the Court award to Golden Corral?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
ered and defended vigorously.
Golden Corral filed a separate lawsuit against the Scisms seeking payment of franchise fees of over $1 million dollars arising out of the Scisms' abandonment of the franchise.
Golden Corral and the Scisms cross-moved for summary judgment on June 20, 2023. On March 27, 2024, the Court granted Golden Corral's motion and dismissed all of the Scisms' claims against Golden Corral with prejudice, concluding that fact discovery had failed to uncover any evidence that Golden Corral had done anything wrong under either the contract between the parties or the New Jersey Franchise Practices Act. Further, the Court concluded that the Scisms had breached their contract with Golden Corral by abandoning their restaurant during the middle of the contract term. The Court awarded Golden Corral over $1.1 million in damages.
The Scisms filed an appeal of these decisions to the United States Court of Appeals for the Third Circuit in April 2024. In March 2025, the appellate court affirmed the District Court decision in its entirety. Final Judgment was then entered in Golden Corral's favor in the amount of $1.1 mill
Source: Item 3 — LITIGATION (FDD pages 9–10)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, the Court awarded Golden Corral over $1.1 million in damages in a lawsuit against a franchisee, GC of Vineland, LLC, and its owners, William and Karen Scism. The lawsuit originated from the Scisms' abandonment of their franchise, leading Golden Corral to seek payment of franchise fees exceeding $1 million.
The initial ruling by the District Court on March 27, 2024, dismissed all claims made by the Scisms against Golden Corral, determining that there was no evidence of wrongdoing by Golden Corral under the contract or the New Jersey Franchise Practices Act. The court also concluded that the Scisms had breached their contract by abandoning the restaurant. This initial ruling led to the award of damages to Golden Corral.
The Scisms subsequently appealed the District Court's decisions, but in March 2025, the appellate court affirmed the original decision in its entirety. Following this affirmation, a final judgment was entered in Golden Corral's favor for $1.1 million, and the matter was closed. This outcome underscores the importance of franchisees adhering to their contractual obligations and the potential financial consequences of abandoning a franchise agreement.