Does Golden Corral have the right to approve any transfer of the franchise by the franchisee?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Our approval of transfer by you | § 13 of Franchise Agreement. § 7 of Area Development Agreement. Not applicable to Coastal Agreement. | We have the right to approve transfers. | | | m. Conditions for our approval of transfer | § 13 of Franchise Agreement. § 7 of Area Development Agreement. Not applicable to Coastal Agreement. | Conditions include: Payment of amounts due; non-default; general release; transferee qualifications; presence of approved Operations Principal, if required by us; continuing liability; others. | | n. | Our right of first refusal to acquire your business | § 13 of Franchise Agreement. § 7 of Area Development Agreement. Not applicable to Coastal Agreement. | We can match any offer. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 58–64)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, Golden Corral retains the right to approve any transfer of the franchise by the franchisee. This stipulation is detailed in Section 13 of the Franchise Agreement and Section 7 of the Area Development Agreement, but it does not apply to the Coastal Agreement.
This provision means that if a franchisee wishes to sell their Golden Corral restaurant or transfer their interest in the franchise, they must first obtain approval from Golden Corral. This approval process allows Golden Corral to ensure that the new owner meets their standards and is capable of maintaining the quality and reputation of the franchise.
The conditions for Golden Corral's approval include several factors. The franchisee must have paid all amounts due, not be in default of the agreement, and provide a general release. The potential transferee must also meet Golden Corral's qualifications and, if required, have an approved Operations Principal in place. The original franchisee may also be required to maintain continuing liability even after the transfer. Golden Corral also has the right of first refusal, allowing them to match any offer made by a potential buyer.