Is the National Fund considered an asset of Golden Corral?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The National Fund is not and will not be an asset of Golden Corral. An independent certified public accountant selected by Golden Corral will review the statement of operations of the National Fund maintained by Golden Corral annually, which statement will be made available to you, upon reasonable notice (Franchise Agreement, Section 11.2.6).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–48)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, the National Fund is explicitly not considered an asset of Golden Corral. The funds contributed by franchisees and company-owned restaurants are maintained separately from Golden Corral's other monies. An independent certified public accountant reviews the National Fund's statement of operations annually, and this statement is available to franchisees upon reasonable notice.
Golden Corral intends for the National Fund to be perpetual but retains the right to terminate it, provided that all monies are expended for advertising and promotional purposes or returned to the contributors based on their respective contributions. This arrangement ensures that the funds are used for the benefit of the Golden Corral system and not for the direct financial gain of the franchisor.
This setup is fairly common in franchising, where advertising funds are typically kept separate to ensure transparency and proper use of franchisee contributions for marketing and promotional activities. The fact that the National Fund is not an asset of Golden Corral provides some assurance to franchisees that the funds will be used as intended and not absorbed into the franchisor's general assets.