How must the Royalty fee be paid for a Golden Corral franchise?

According to Golden Corral's 2025 Franchise Disclosure Document, the royalty fee is 4% of Gross Sales. This fee must be paid weekly via electronic funds transfer. Gross Sales are defined as all receipts from the sale of food, beverages, merchandise, or services in or from the Restaurant, including income from off-premises catering, vending machines, electronic or other game machine receipts, and employee meals at discounted sales prices, whether for cash or credit, and regardless of collection in the case of credit. Gross Sales do not include refunds or any sales taxes or other taxes collected for transmittal to the appropriate taxing authorities.

The weekly electronic funds transfer requirement means franchisees must ensure they have systems in place to accurately track and report gross sales on a weekly basis. This impacts cash flow management, as 4% of gross sales is remitted to Golden Corral each week. Franchisees need to factor this ongoing expense into their financial projections and operational budgets.

Franchisees should be aware of exactly what constitutes Gross Sales, as this figure directly determines the royalty fee. Understanding the inclusions (like catering and vending machine income) and exclusions (like sales taxes) is crucial for accurate reporting and avoiding potential discrepancies or disputes with Golden Corral. The definition of Gross Sales is standard in the franchise industry, but it is important to understand how Golden Corral specifically defines it.