How often does a Golden Corral franchisee contribute to the National Fund?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.2.4 Franchisee shall contribute to the National Fund weekly as described in Section 4.3 hereof.
All sums paid by Franchisee to the National Fund shall be maintained in an account or accounts separate from the other monies of Franchisor.
Such sums shall not be used to defray any of Franchisor's expenses, except for such reasonable administrative costs and overhead, if any, as Franchisor may incur in activities reasonably related to the administration or direction of the National Fund or advertising programs for franchisees and the System, including the costs of enforcing contributions to the Fund required under this Agreement, and the costs of preparing the statement of operations, as required under Section 11.2.6 hereof, and the cost of personnel for creating and implementing all such activities.
The National Fund and its earnings shall not otherwise inure to the benefit of Franchisor.
Franchisor shall maintain separate bookkeeping accounts for the Fund.
Source: Item 22 — CONTRACTS (FDD pages 84–85)
What This Means (2025 FDD)
According to the 2025 Golden Corral Franchise Disclosure Document, a franchisee is required to contribute to the National Fund on a weekly basis. Specifically, the FDD states that the franchisee must make these contributions as described in Section 4.3 of the agreement. These contributions are allocated towards advertising efforts, which are intended to enhance the recognition and acceptance of the Golden Corral brand for the benefit of all restaurants within the system.
The National Fund is used exclusively for the costs associated with maintaining, administering, researching, directing, creating, and preparing advertising and promotional activities. These activities aim to increase system revenues and enhance the image of the Golden Corral system and its proprietary marks. The franchisor can use the fund for various advertising campaigns, marketing surveys, public relations activities, product development, and promotional materials.
Golden Corral also contributes to the National Fund for its company-owned facilities, if any, on the same basis as required of comparable franchisees within the system. The funds paid by franchisees are kept in separate accounts from the franchisor's other monies and are not used to cover the franchisor's expenses, except for reasonable administrative costs related to the fund's administration and advertising programs. This ensures that the contributions are primarily used for the benefit of the franchise system's marketing and promotional efforts.