Under what condition is each provision of the Golden Corral amendment effective?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
ding "Acknowledgments," 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.
- Each provision of this Amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Illinois Franchise Disclosure Act of 1987 are met independently without reference to this Amendment.
IN WITNESS WHEREOF, the parties hereto have duly executed, sealed, and delivered this Illinois Amendment to the Franchise Agreement on the same date as the Franchise Agreement was executed.
GOLDEN CORRAL FRANCHISING SYSTEMS, INC.
| By: R.
Source: Item 23 — RECEIPTS (FDD pages 85–304)
What This Means (2025 FDD)
According to the 2025 Golden Corral Franchise Disclosure Document, the effectiveness of each provision within specific state amendments is contingent upon meeting the jurisdictional requirements of the relevant state's franchise laws, independently of the amendment itself. This condition applies to amendments for California, Illinois, Minnesota and New York.
For California, each provision of the California Amendment to the Franchise Agreement is effective only if the jurisdictional requirements of the California Franchise Investment Law are met without considering the amendment. Similarly, for Illinois, the provisions of the Illinois Amendment to the Franchise Agreement are effective only if the jurisdictional requirements of the Illinois Franchise Disclosure Act of 1987 are met independently, without reference to the amendment. The Minnesota Amendment to the Franchise Agreement follows the same principle, requiring that the jurisdictional requirements of the Minnesota Franchise Law are met independently, without considering the amendment.
For New York, the amendment will only be effective if the Franchise Agreement and the relationship between the franchisee and Golden Corral satisfy all jurisdictional requirements of the New York General Business Law, without considering the amendment. This means that the base franchise agreement must already comply with state law for the amendment to take effect. This ensures that the amendment serves to clarify or enhance the agreement within the bounds of state law, rather than attempting to circumvent it. This approach is typical in franchising to ensure compliance with varying state regulations and to protect the interests of franchisees.