What must the transferee of a Golden Corral Development Agreement agree to in writing?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
7.1. Transfer by Franchisor: Franchisor shall have the right to transfer or assign all or any part of its rights or obligations under this Development Agreement to any person or legal entity. With respect to any assignment which results in the subsequent performance by the assignee of all of Franchisor's obligations under this Agreement, the assignee shall expressly assume and agree to perform such obligations, and shall become solely responsible for all obligations of Franchisor under this Agreement from the date of assignment.
Source: Item 22 — CONTRACTS (FDD pages 84–85)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, if Golden Corral assigns its rights or obligations under the Development Agreement, the assignee must expressly assume and agree in writing to perform all of Golden Corral's obligations under the agreement. This written agreement makes the assignee solely responsible for all of Golden Corral's obligations from the date of the assignment forward.
This requirement protects the Area Developer (the franchisee) by ensuring that a new party taking over the franchisor's responsibilities is legally bound to fulfill them. It provides assurance that the new franchisor will adhere to the terms of the Development Agreement, maintaining consistency and stability in the franchise relationship. Without this written agreement, the Area Developer could face uncertainty regarding the fulfillment of obligations initially promised by Golden Corral.
This type of clause is standard in franchise agreements to ensure continuity and protect the interests of both parties during a transfer of ownership or rights. It is important for prospective Area Developers to understand this provision, as it clarifies the responsibilities of any future entity that may assume Golden Corral's role. Area Developers should carefully review the terms of the Development Agreement to fully understand their rights and obligations in the event of a transfer.