Is obtaining a lease a development obligation for Golden Corral?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2. Site Selection and Management Orientation: Prior to Area Developer's acquisition by lease or purchase of any site for a Restaurant but within ninety (90) days after the execution of this Agreement, Area Developer shall complete and submit to Franchisor, in form(s) as may be specified by Franchisor, a feasibility study regarding Area Developer's proposed costs of development, construction and operation of a Golden Corral restaurant on the Proposed Site, the description of the proposed site and such information or materials as Franchisor may reasonably require, together with a letter of intent or other evidence satisfactory to Franchisor which confirms Area Developer's favorable prospects for obtaining the site. Franchisor shall have up to sixty (60) days after receipt of the feasibility study, the description of the proposed site and other information and materials to approve or disapprove, in its sole discretion, each proposed site for a Restaurant. Notwithstanding anything contained in this Development Agreement to the contrary, Area Developer must acquire by lease or purchase a location approved by Franchisor at the earlier of one hundred eighty (180) days after the execution of this Agreement or six (6) months before the scheduled opening date of the first Restaurant as set forth in the Development Schedule, and
thereafter must acquire a location approved by Franchisor not less than six (6) months prior to the date each respective Restaurant is required to be opened pursuant to the Development Schedule.
Source: Item 22 — CONTRACTS (FDD pages 84–85)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, acquiring a site by lease or purchase is a development obligation for Area Developers. Specifically, the Area Developer must acquire a location approved by Golden Corral either by lease or purchase. This acquisition must occur at the earlier of 180 days after the execution of the Development Agreement or six months before the scheduled opening date of the first restaurant as outlined in the Development Schedule.
Furthermore, the Area Developer must continue to acquire approved locations no less than six months before the scheduled opening date of each subsequent restaurant, as per the Development Schedule. This timeline underscores the importance of adhering to the Development Schedule, as failure to do so constitutes a default under the Development Agreement.
Prior to acquiring a site, the Area Developer is required to submit a feasibility study to Golden Corral for approval. This study should include proposed development, construction, and operation costs, a description of the proposed site, and any other information reasonably required by Golden Corral. Additionally, the Area Developer must provide a letter of intent or other evidence demonstrating favorable prospects for obtaining the site, ensuring that Golden Corral has sufficient information to assess the viability of the proposed location.