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Description
Investment Icon

What Are the Initial Investment Requirements for a Golden Corral Franchise?

To open a Golden Corral franchise, you should prepare for a significant initial investment ranging from $2,059,717 to $8,528,857. This includes a franchise fee of $50,000. Additionally, you will need to have between $1,000,000 and $2,300,000 in cash readily available, along with a net worth of $1,500,000 to $2,000,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they meet the necessary criteria for ownership.

Fees Icon

What Are the Ongoing Fees Associated with a Golden Corral Franchise?

As a Golden Corral franchisee, you will be subject to ongoing fees that include a royalty fee of 4% of your gross sales and a marketing fee of 2.40%. These fees are essential for maintaining brand presence and supporting marketing efforts that drive customer traffic to your location. Being aware of these costs can help you budget effectively and forecast your franchise's financial performance.

Revenue Icon

What Is the Average Revenue Potential for a Golden Corral Franchise?

Golden Corral franchises have shown promising revenue potential, with an average annual revenue of approximately $4,419,745 per unit. The median annual revenue is reported at $4,263,329, while revenues can range from as low as $2,462,422 to as high as $6,401,447. This data highlights the profitability that can be achieved, making it an attractive opportunity for prospective franchisees looking to enter the food service sector.

Breakeven Icon

How Quickly Can You Expect to Break Even with a Golden Corral Franchise?

Franchisees can anticipate a breakeven period of about 12 months, which is relatively quick compared to other franchises. The investment payback period is estimated at 36 months, allowing franchisees to recoup their initial investment within a reasonable timeframe. This rapid return on investment can be a significant factor in evaluating the viability of a Golden Corral franchise as a business opportunity.

Golden Corral Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$1,500,000 - $2,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

36 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$50,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

4%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2.40%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$2,059,717 - $8,528,857
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$1,000,000 - $2,300,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$4,419,745
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$4,263,329
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$6,401,447
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$2,462,422
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Food Franchises
Category icon A more specific division within the broader industry.

i Category:

Casual Dining
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Lance Trenary
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

5151 Glenwood Avenue, Raleigh, North Carolina 27612
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1985
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Golden Corral Corp.

Golden Corral Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

355
The number of locations owned by independent franchisees.

Franchised Units i

352
The number of locations owned and run by the franchisor.

Corporate Units i

3
Units 2021 2022 2023
Total Units 359 362 355
Net Change YoY +3 -7
Franchised Units 355 358 352
Net Change YoY +3 -6
Corporate Units 4 4 3
Net Change YoY 0 -1
Investment About

Investment Overview

The initial investment to open a Golden Corral franchise ranges from $2,059,717 to $8,528,857. This includes a franchise fee of $50,000, a royalty fee of 4% on gross sales, and a marketing fee of 2.40%. Prospective franchisees should be prepared to have cash reserves between $1,000,000 and $2,300,000, and a net worth requirement of $1,500,000 to $2,000,000.

Potential About

Revenue Potential

Golden Corral franchises show promising financial performance, with average annual revenue per unit reported at $4,419,745 and median revenue at $4,263,329. Units have shown revenue ranging from a low of $2,462,422 to a high of $6,401,447, indicating strong market potential for franchisees.

Metrics About

Breakeven and Payback

Franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is estimated at 36 months, providing a relatively quick return on investment compared to many other franchise opportunities.

Fees About

Unit Growth

Golden Corral has maintained a stable presence in the market, with 355 franchised units in 2021, slightly increasing to 358 in 2022, and then stabilizing at 352 in 2023. This consistent unit count reflects the brand's resilience and ongoing demand in the casual dining sector.

Breakeven About

Financial Performance

The average annual revenue for Golden Corral units is $3,705,933, with a gross profit margin of 61%. Key operating expenses total $2,935,420, which includes food costs and labor-related expenses. The EBITDA stands at $770,512, representing 20.79% of revenue, indicating solid profitability for franchisees.

Units About

Corporate Structure

Golden Corral is managed by its parent company, which oversees both franchised and corporate-owned locations. As of 2023, the company operates three corporate units, down from four in previous years, highlighting a focus on franchising as a growth strategy while maintaining a small corporate footprint.

Frequently Asked Questions

The initial investment for a Golden Corral franchise ranges from approximately $2,059,717 to $8,528,857, which includes the franchise fee and other startup costs.