How much in franchise fees was Golden Corral seeking from the Scisms?
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
Source: Item 3 — LITIGATION (FDD pages 9–10)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, Golden Corral filed a lawsuit against the Scisms seeking payment of franchise fees of over $1 million due to the Scisms abandoning their franchise. The document further indicates that the Scisms, a Golden Corral franchisee and its owners, were initially sued by a lender for defaulting on a note, leading the Scisms to file claims against Golden Corral.
The legal proceedings culminated in the court granting Golden Corral's motion and dismissing all claims made by the Scisms against Golden Corral. The court determined that the Scisms had breached their contract by abandoning their restaurant during the contract term.
Ultimately, the court awarded Golden Corral over $1.1 million in damages. This amount appears to be inclusive of the franchise fees initially sought, along with other damages incurred by Golden Corral due to the Scisms' breach of contract.