What is the role of McLane Foodservice and US Foods in the Golden Corral system?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
Currently, franchisees participating in our New Development Incentive Program can earn rebates on their purchases from our designated foodservice distributors (such as McLane Foodservice and/or US Foods) for new Restaurants developed under the program. Specifically, each qualifying Restaurant will earn credits on such Restaurant's designated foodservice distributor account in the amounts as follows: (i) 3% of each such Restaurant's Gross Sales in year 1, (ii) 2% of each such Restaurant's Gross Sales in year 2, and (iii) 1% of each such Restaurant's Gross Sales in year 3 ("year 1" is the one-year period from the date of the Restaurant opening). The credits will be calculated from the distributor's invoices to the Restaurant and paid no less frequently than quarterly in arrears directly to the distributor. As a condition to participating in this incentive program, you may be required to enter into an agreement with Golden Corral, GCC and our designated food distributor(s)
describing the terms and conditions of the program, to submit invoices to us, and to consent to your distributor's sharing of that information. We have the right to change the timing and method of calculation and payment. You may also qualify for other benefits described in Item 11.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, McLane Foodservice and US Foods are designated foodservice distributors within the Golden Corral system. Franchisees participating in the New Development Incentive Program can receive rebates on purchases from these distributors for new restaurants. These rebates are calculated as a percentage of the restaurant's gross sales: 3% in year 1, 2% in year 2, and 1% in year 3, with 'year 1' being the first year from the restaurant's opening date. The credits are calculated from the distributor's invoices and paid quarterly in arrears directly to the distributor.
To participate in the New Development Incentive Program, franchisees may need to enter into an agreement with Golden Corral, GCC (Golden Corral Corporation), and the designated food distributor(s). This agreement outlines the terms and conditions of the program, requires franchisees to submit invoices, and grants consent for the distributor to share information with Golden Corral. Golden Corral retains the right to modify the timing and method of calculation and payment of these rebates.
Outside of the New Development Incentive Program, Golden Corral franchisees are required to purchase goods and services from approved suppliers. Golden Corral can designate one or more independent foodservice distributors as the primary distributor of food and supplies to Golden Corral restaurants. While the document specifies that franchisees must purchase from approved suppliers, it also states that Golden Corral does not require franchisees to purchase any goods or services from Golden Corral or from suppliers designated by Golden Corral, except for the designated foodservice distributors and other specific items like beverage suppliers and point-of-sale systems. This suggests that McLane Foodservice and US Foods, as designated distributors, play a significant role in the supply chain for Golden Corral restaurants, particularly for those participating in the incentive program.