Who must be protected by the insurance policies procured by a Golden Corral franchisee?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
s not to transmit or cause any other party to transmit advertisements or solicitations
by telephone, email, text message, instant message, social networking website, VoIP, streaming media, or any other electronic medium without first obtaining Franchisor's written consent as to (a) the content of the advertisements or solicitations and (b) the type of media intended to be used.
12. INSURANCE
- 12.1 Franchisee's Insurance: Franchisee shall procure, prior to the commencement of any operations under this Agreement, and maintain in full force and effect during the term of this Agreement, at Franchisee's expense, an insurance policy or policies protecting Franchisee, Franchisor, and Golden Corral Corporation and their officers, directors, shareholders, partners, and employees, against demand or claim with respect to any loss, liability, personal and bodily injury, death, property damage, or expense whatsoever, arising or occurring upon or in connection with the franchised business. Such policy or policies shall be written by an insurance company satisfactory to Franchisor in accordance with standards and specifications set forth in the Manuals or otherwise in writing, and shall include, at a minimum, (except as additional coverages and higher policy limits may reasonably be specified by Franchisor from time to time in the Manuals or otherwise in writing) the following:
- 12.1.1 Comprehensive general liability insurance, including broad form comprehensive general liability endorsement, product liability and independent contractors coverage and comprehensive automobile liability coverage, for owned, hired and non-owned vehicles used by the franchised business, for bodily injury, personal injury, and property damage with limits of not less than One Million Dollars ($1,000,000) combined single limit (Two Million Dollars ($2,000,000) aggregate for multi-unit franchisees) and naming Franchisor and Golden Corral Corporation as additional insureds in each such policy or policies;
- 12.1.2 Workers' compensation and employer's liability insurance with limits of not less than Five Hundred Thousand Do
Source: Item 22 — CONTRACTS (FDD pages 84–85)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, a franchisee's insurance policies must protect the franchisee, Golden Corral Corporation, and their officers, directors, shareholders, partners, and employees. This broad coverage ensures that various stakeholders associated with the franchised business are protected against potential losses, liabilities, and claims.
The required insurance coverage includes comprehensive general liability insurance with a limit of not less than $1,000,000 (or $2,000,000 aggregate for multi-unit franchisees), workers' compensation and employer's liability insurance with limits of not less than $500,000, and dram shop or liquor liability insurance coverage with a combined single limit of not less than $2,000,000 per occurrence if alcohol is served. Additionally, the franchisee must obtain all-risk physical damage insurance for the full replacement value of the restaurant and business interruption insurance to cover royalty and advertising fund payments in case of business interruption.
Golden Corral also requires that the franchisee's insurance policies provide primary coverage to Golden Corral Corporation, meaning that the franchisee's insurance must be exhausted before Golden Corral's own insurance policies are utilized. The franchisee must provide evidence of insurance to Golden Corral, including endorsements that the policies will not be canceled or altered without at least 30 days' prior written notice. This ensures that Golden Corral is promptly informed of any changes to the franchisee's insurance coverage, allowing them to take necessary actions to protect their interests.
It is important for prospective Golden Corral franchisees to understand these insurance requirements and factor the costs of obtaining and maintaining the necessary coverage into their financial planning. Franchisees should also consult with an insurance professional to ensure they have adequate coverage to protect themselves and the franchisor from potential risks associated with operating a Golden Corral restaurant.