What is the purpose of the National Fund for Golden Corral?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
11.2.2 The National Fund and all contributions thereto, and any earnings thereon, shall be used exclusively to meet any and all costs of maintaining, administering, researching, directing, creating, and preparing advertising and/or promotional activities and all other activities which Franchisor believes will increase System revenues and/or enhance the image of the System and/or Proprietary Marks, including, without limitation, the costs of preparing, creating and conducting promotional programs involving use of stored value gift cards and other forms of non-cash payment systems, customer loyalty programs and similar types of programs; advertising campaigns in various media and the internet; direct mail and outdoor billboard advertising; marketing surveys and other public relations activities, customer feedback and similar activities; employing advertising and/or public relations agencies to assist therein; product development; and providing promotional, point of purchase/in-Restaurant materials and other marketing materials for franchisees and company-owned restaurants in the System.
11.2.3 Franchisor shall, for each of its company-owned facilities (if any), make contributions to the National Fund on the same basis as assessments required of comparable franchisees within the System.
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 Golden Corral's 2025 Franchise Disclosure Document, the National Fund, including all contributions and earnings, is to be used exclusively for the costs of maintaining, administering, researching, directing, creating, and preparing advertising and promotional activities. These activities are intended to increase system revenues and enhance the image of the Golden Corral system and its Proprietary Marks. This includes promotional programs using stored value gift cards, customer loyalty programs, advertising campaigns across various media, direct mail, outdoor billboard advertising, marketing surveys, public relations, customer feedback, and providing promotional materials for franchisees and company-owned restaurants.
Golden Corral also uses the National Fund to employ advertising and public relations agencies, product development, and other marketing initiatives. The funds are kept in separate accounts from Golden Corral's other monies and cannot be used for the franchisor's expenses, except for reasonable administrative costs related to the fund's administration, advertising programs, costs of enforcing contributions, preparing operational statements, and personnel costs for implementing these activities. The National Fund's earnings are not intended to benefit the franchisor directly.
Golden Corral also contributes to the National Fund for its company-owned facilities on the same basis as required from comparable franchisees. Franchisees are required to contribute to the National Fund weekly. The franchisor will provide franchisees with an annual statement of the National Fund's operations, reviewed by an independent certified public accountant. While Golden Corral intends for the National Fund to be perpetual, it retains the right to terminate the fund, but only after all monies have been used for advertising and promotional purposes or returned to the contributors based on their contributions.