factual

Which sections are deleted in their entirety from the Golden Corral franchise agreement?

Golden_Corral Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Acknowledgements. Sections 25.1, 25.2 and 25.3 are deleted in their entirety. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

Source: Item 23 — RECEIPTS (FDD pages 85–304)

What This Means (2025 FDD)

According to the 2025 Golden Corral FDD, specific sections of the franchise agreement related to acknowledgments are deleted in their entirety through amendments, particularly sections 25.1, 25.2, and 25.3. This deletion is highlighted in amendments for franchisees in New York, California, and Rhode Island. The amendment ensures that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including claims related to fraud, or disclaim reliance on franchisor statements. This provision takes precedence over any conflicting terms in other documents associated with the franchise agreement.

For prospective Golden Corral franchisees, this means that certain acknowledgments they might be asked to sign during the franchise commencement cannot be used to waive their rights under applicable state franchise laws. This offers a layer of protection against potentially overreaching waivers or disclaimers. The amendment specifically addresses concerns related to fraud in the inducement and reliance on statements made by Golden Corral or its representatives.

This type of amendment is common in franchise agreements to comply with state franchise laws, which often aim to protect franchisees from unfair practices. Franchisees should carefully review the entire franchise agreement and any amendments to understand their rights and obligations fully. It is advisable to seek legal counsel to ensure a complete understanding of the implications of these amendments and the franchise agreement as a whole.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.