Mother of Two Claims $10 Million Loss In 52 Days After Unfair Termination of Golden Corral Franchise

Although Sherrance Henderson’s fight against Golden Corral Franchise Systems began several years ago, the mother of two autistic children is still pressing forward. As the owner of Cornucopia Queen, Inc. (CQI) doing business as Golden Corral, Henderson is advancing her legal battle with serious allegations of racial discrimination and financial ruin. She claims that her franchise in Poughkeepsie, New York, was unlawfully terminated just 52 days after opening, resulting in nearly $10 million in losses.

What Happened

In 2013 she signed a 15-year franchise contract with Golden Corral, wanting a site in Newark, New Jersey. But when Golden Corral refused to honor her Newark license agreement, she accepted the Poughkeepsie, NY, location. She opened in January 2017 but by March 2017, Golden Corral terminated the franchise license of Cornucopia Queen, Inc.

According to the Poughkeepsie Journal, Golden Corral claimed that Henderson’s location was devaluing their brand, which led to the termination of her license. However, Cornucopia Queen, Inc. had no Department of Health violations or fines from the city of Poughkeepsie.

To become a Golden Corral Buffet and Grill franchise owner, you need at least $500,000 in liquid capital and a net worth of at least $2.5 million. Additionally, franchisees are required to pay a monthly royalty of 4% on gross revenues to the franchiser, according to Franchisee Help.

According to Henderson, she was the only Black American female franchisee at the time out of more than 350 Golden Corral franchise buffet locations.

Henderson invested her life savings, primarily from a medical malpractice settlement, to purchase and establish a Golden Corral franchise, which is a family-oriented buffet style restaurant concept. However, shortly after its opening, Golden Corral Franchise Systems revoked her license citing infractions such as cigarette butts in an ashtray, debris in the parking lot, workers not wearing sanitary hats, and minor temperature issues in buffet trays. Henderson contends these infractions were trivial and should have been rectifiable.

Henderson says the termination of her franchise license without an opportunity to address these minor issues was not only unjust but rooted in racial, gender, and disability discrimination. She asserts that other non-Black and male franchise owners were given ample time to correct similar infractions, a courtesy that was not extended to her. As a result, Henderson faced severe financial consequences, including the foreclosure of her home, forcing her to rely on state and federal assistance for survival.

In 2018, Henderson initially filed her case at the Southern District White Plains Federal Courthouse, alleging that Golden Corral Franchise Systems discriminated against her business. The original complaint sought over $265 million in damages. The suit was refiled on March 21, 2023.

Henderson’s legal team, which includes Hamlin Firm of Newark, New Jersey, has discovered that the financial damage inflicted exceeds $9.8 million. This amount represents the funds Henderson meticulously invested to secure her family’s future through the Golden Corral franchise.

The case is titled 19 CV 2878 (NSR) and is being handled in the United States District Court for the Southern District of New York (S.D.N.Y.). As of March 21, 2023, the court has recognized the significant financial and emotional damages suffered by Henderson, allowing her to pursue punitive damages against Golden Corral Franchise Systems. No future court date has been made public.

“I would’ve continued providing employment opportunities and going through my growing pains to be the best buffet in the area if I was afforded the opportunity by Golden Corral,” Henderson told the Poughkeepsie Journal. “As a result of Golden Corral terminating my license agreement, I was not able to continue the employment and other opportunities that were afforded by the revenue of the store.”

Henderson’s formidable legal team, led by Ray Hamlin, is determined to seek justice for the loss of her life savings and the unjust closure of her business. The Hamlin Firm has a notable track record, including representing media mogul Wendy Williams in her federal lawsuit against HOT 97 radio station and protecting Malcolm X’s family legacy.

Henderson, who founded Cornucopia Queen Inc. in 2015 to formalize her entrepreneurial pursuits, is an alumna of Howard University and Johns Hopkins University Carey Business School.