What is Golden Corral required to maintain for the National Fund?

• 1. Golden Corral will maintain National Fund contributions in an account or accounts separate from the other monies of Golden Corral. Golden Corral will not use such sums to defray any of Golden Corral's expenses, except for reasonable administrative costs and overhead, if any, Golden Corral 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 National Fund required under the Franchise Agreement and the costs of preparing the statement of operations which includes contributions and expenditures and the cost of personnel for creating and implementing the Fund's activities. The National Fund and its earnings will not otherwise benefit Golden Corral. Golden Corral will maintain separate bookkeeping accounts for the National Fund (Franchise Agreement, Section 11.2.4).
• 1. Golden Corral anticipates that all contributions to and earnings of the National Fund will be expended for advertising and/or promotional purposes during the taxable year within which the contributions are made. If, however, excess amounts remain in the National Fund at the end of the taxable year, Golden Corral will expend in the following taxable year(s) monies first out of accumulated earnings from previous years, next out of earnings in the current year, and finally from contributions. Any deficits will be paid from future contributions (Franchise Agreement, Section 11.2.5).
• 1. The National Fund is not and will not be an asset of Golden Corral. An independent certified public accountant selected by Golden Corral will review the statement of operations of the National Fund maintained by Golden Corral annually, which statement will be made available to you, upon reasonable notice (Franchise Agreement, Section 11.2.6).
• 1. Although Golden Corral intends the National Fund to be of perpetual duration, Golden Corral maintains the right to terminate the National Fund. The National Fund may not be terminated, however, until all monies in the National Fund have been expended for advertising and/or promotional purposes or returned to contributors on the basis of their respective contributions (Franchise Agreement, Section 11.2.7).

During the fiscal year ending January 1, 2025, we estimate that 78.3% of the National Fund's expenditures were for media advertising; 11.9% were for creative and production expenses for television commercials and promotional materials; 9.1% were for agency retainers and fees; 0.6% were for national charitable events/sponsorship(s) (Military Appreciation Monday) and Convention expenses; and 0% were for administrative fees.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–48)