What pre-opening obligations does Golden Corral have to the franchisee before the Restaurant opens?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
OR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING**
Except as listed below, Golden Corral is not required to provide you with any assistance.
Pre‐Opening Obligations
Before the opening of the Restaurant, Golden Corral will:
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- Provide site selection guidelines and consultation as Golden Corral may deem advisable (Development Agreement, Section 5.1; Site Selection Addendum, Paragraph 4.a).
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- Provide on-site evaluation as Golden Corral may deem advisable in response to your requests for site approval (Development Agreement, Section 5.1; Site Selection Addendum, Paragraph 4.b).
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- Make available to you, at no charge, generic plans and specifications for the construction of a Restaurant designed for use in Raleigh, North Carolina, including the Restaurant's exterior and interior design and layout, fixtures, furnishings, and signs (Franchise Agreement, Section 3.1). Our generic plans are not intended as, and may not be used as, your construction drawings. You must have your own site-specific plans prepared by a licensed architect.
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- Provide you with specifications for equipment, supplies, and inventory necessary to establish the Restaurant (Franchise Agreement, Section 3.2).
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- Provide a pre-opening training program (Franchise Agreement, Section 3.3).
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- Upon your request, and subject (as to timing) to the availability of personnel, provide you, at Golden Corral's expense, an aggregate of 15 to 45 man-days of on-site management assistance when you open your Restaurant (Franchise Agreement, Section 3.4).
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- Immediately before, upon and after opening of your first and second Restaurants, make available to you an "A-Team" comprised of certain personnel of Golden Corral and/or authorized franchisees of other Golden Corral Restaurants for temporary employment by you, at the Restaurant, for the length of time Golden Corral, in its sole discretion, deems necessary to assist in training and preparing your non-managerial employees for opening and operating the Restaurant. Typically, the A-Team is comprised of from 20 to 24 individuals for on-site assistance, depending on Restaurant size. During the time these personnel are performing on-site assistance for you, you must bear all the costs and expenses (they will be considered to be your employees), such as transportation, including air travel to and from the Restaurant, food, lodging, and wages for such employees
during the period such on-site assistance is being provided. The estimate of these costs is included in Item 7. (Franchise Agreement, Section 3.5)
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- Provide you, on loan, one copy of the Manual, which may be in electronic form (Franchise Agreement, Section 3.8).
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- Provide you, in the Manual or otherwise in writing, with initial sets of accounting forms for use in the Restaurant (Franchise Agreement, Section 3.9).
Continuing Obligations
After the opening of the Restaurant, Golden Corral will provide:
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- Specifications for equipment, supplies, and inventory necessary to operate the Restaurant (Franchise Agreement, Section 3.2).
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- Additional training programs as Golden Corral deems appropriate (Franchise Agreement, Section 3.3).
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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, Golden Corral has several pre-opening obligations to the franchisee. These obligations include providing site selection guidelines and consultation as Golden Corral deems advisable, as well as on-site evaluation in response to the franchisee's requests for site approval. Golden Corral will also make available generic plans and specifications for the construction of a Restaurant designed for use in Raleigh, North Carolina, including the Restaurant's exterior and interior design and layout, fixtures, furnishings, and signs. However, these generic plans are not intended as construction drawings, and the franchisee must have their own site-specific plans prepared by a licensed architect.
Golden Corral will provide the franchisee with specifications for equipment, supplies, and inventory necessary to establish the Restaurant. They will also provide a pre-opening training program. Upon the franchisee's request, Golden Corral will provide an aggregate of 15 to 45 man-days of on-site management assistance at Golden Corral's expense when the franchisee opens their Restaurant, subject to personnel availability. Immediately before, upon and after opening of the first and second Restaurants, Golden Corral will make available an "A-Team" to assist in training and preparing the franchisee's non-managerial employees.
Golden Corral will loan the franchisee one copy of the Manual, which may be in electronic form, and provide initial sets of accounting forms for use in the Restaurant, either in the Manual or otherwise in writing. The franchisee, however, must bear all costs and expenses related to the A-Team's on-site assistance, including transportation, food, lodging, and wages, as they will be considered the franchisee's employees during that time. The estimated costs for the A-Team are included in Item 7 of the FDD.
It is important to note that Golden Corral has the right to delegate these pre-opening responsibilities and duties to any designee, except those concerning advertising approvals. Franchisees should be aware of these obligations and understand the associated costs and responsibilities involved in the pre-opening phase.