When is the Golden Corral Royalty fee due?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 4% of Gross Sales | Weekly by electronic funds transfer | See Note 2 |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, the royalty fee, which is 4% of Gross Sales, is due weekly by electronic funds transfer. Gross Sales is defined as all receipts from the sale of food, beverages, merchandise, or services from the restaurant, including income from catering, vending machines, and employee meals. Gross Sales does not include refunds or sales taxes collected for taxing authorities.
This weekly payment schedule means franchisees must maintain tight financial control and ensure sufficient cash flow to meet this ongoing obligation. The electronic funds transfer requirement suggests a streamlined payment process, but franchisees should confirm the specific transfer protocols and deadlines to avoid late fees or other penalties.
Franchisees should also be aware of how Golden Corral defines Gross Sales, as this forms the basis for royalty calculations. Understanding what is included and excluded from Gross Sales is crucial for accurate reporting and payment. Note 2 in Item 6 of the FDD provides the definition of Gross Sales.