GOLDEN CORRAL Wealth-loss Diet: Franchisee Loses $3M in 51 Days

It took franchise owner Sherrance Henderson four years and more than three million dollars to open the Poughkeepsie, NY Golden Corral restaurant.  It took Golden Corral 51 days to terminate her franchise and allow a favored franchisee to take it over.  Golden Corral left Sherrance Henderson, a disabled single mother with two autistic children, with no way to repay the millions of dollars in loans co-signed by you, the American Taxpayer, through the SBA guaranteed loan program.  The first single African-American woman to own a Golden Corral franchise is now receiving food stamps and soliciting donations to a GoFundMe page. by Sean Kelly

(UnhappyFranchisee.Com)  There are many franchise programs that boast innovative weight-loss programs, but Golden Corral, it seems, has teamed up with TD bank and the American Taxpayer (through the SBA Guaranteed loan program) to create the ultimate, cutting-edge wealth-loss program.

Golden Corral franchiseDoes it work?  Just ask Sherrance Henderson.  The disabled single mother of two autistic children lost more than $3,000,000 when Golden Corral terminated her Poughkeepsie franchise only 51 days after it opened.

Henderson’s recently filed lawsuit documents the life-changing potential of the the Golden Corral Wealth-loss Diet, stating that Henderson “was once a multi-millionaire but was left penniless and if she and her children did not eat at Golden Corral they could not afford to purchase basic necessities, such as food.”

Now that Henderson’s Poughkeepsie franchise has been granted to another franchisee (with no compensation to her), Sherrance Henderson claims she and her kids are destitute & rely on food stamps to eat.

And Sherrance Henderson isn’t the only one to get corralled into the Poughkeepsie Golden Corral all-you-can lose franchise debacle.

The American Taxpayer is potentially on the line for millions of dollars that T.D. Bank issued to Henderson under the protection of the SBA Guaranteed Loan Program.

So it appears that the American Taxpayer foots the bill for T.D. Bank’s and Golden Corral’s decision to sell and finance a multimillion dollar franchise investment to a legally disabled woman who clearly had neither the experience nor the capability to succeed.

It appears that Golden Corral Systems, Inc. and T.D. Bank get to profit from transforming a woman with $2M cash in the bank (all gone), a mortgage-free home worth $1.75M (lost to foreclosure) and a credit score approaching 800 (now around 400) into a food stamps recipient… with a guarantee backed by taxpayer money.

(Are you familiar with Sherrance Henderson, T.D. Bank, Golden Corral Systems, Inc. and the Poughkeepsie NY Golden Corral franchise location?  Please share your experience and opinions with a comment below or by emailing us in confidence at UnhappyFranchisee[at]Gmail.Com)

Did Golden Corral & TD Bank Corral a Disabled Single Mom For Profit?

For years if not decades, Golden Corral franchise investment ads have described their oversized buffet restaurant as a “10,000 sf cash register.”

The Golden Corral franchise is a high-investment, high-volume, complex operations normally reserved for experienced franchisees with at least three years of full-service restaurant ownership or management experience.

Golden Corral franchise owners not only must be able to afford the $2.2 to $6.6M initial investment, they must be able to manage one of the most complex foodservice operations in franchising, and approximately 150 employees.

It appears that Golden Corral and their VP of Franchise Sales, Irwin Roberts, decided to break with their policy and sell Sherrance Henderson a Golden Corral franchise despite her complete lack of restaurant ownership or management experience, and despite a physical disability that would be challenging to manage a 150-employee workforce in a high-volume foodservice operation.

A legal newsletter reported that Sherrance Henderson became “totally disabled,” from injuries she sustained when an orthopedic doctor injected a solution into her spinal cord.  As a result, Sherrance Henderson sustained serious spinal cord damage and is a partial paraplegic who requires a four-tipped cane.  She received a multimillion dollar settlement from a medical malpractice lawsuit she filed in 2001.

At the time she met with Golden Corral VP Irwin Roberts at the Marriott Hotel lobby at the Atlanta airport to discuss her desire to become a Golden Corral franchisee, Sherrance Henderson allegedly had $2 million cash in her bank account, and a mortgage-free $1.75 million dollar home in a country club community, and a credit score approaching 800.

After a few short years on the Golden Corral Wealth-loss Diet, Sherrance Henderson’s $2M bank account would be empty, her $1.75 million house would be lost to foreclosure, her credit score would hit 400, and she would owe millions of dollars in bank loans, credit cards, defaulted leases and to dozens of creditors.

Unable to afford an attorney, Sherrance Henderson, the first and only single female African American franchise owner in Golden Corral history, would represent herself and file a lawsuit pro se.

The lawsuit she filed on her own behalf in the Supreme Court of the State of New York, County of Duchess (Sherrance Henderson, v. Golden Corral Systems, Inc., TD Bank, Small Business Admin Office of the United States, Lance Trenary, Niral Patel, Anthony V Segreti, Jane Doe, And John Doe) seeks a judgment against the named defendants in the amount of $350,000,000.00 for “compensatory damages for back pay, front pay, past and future employment benefits, damages for emotional distress, punitive and/or exemplary damages…”

The woman who not-so-long ago drove a $110,000 Porsche Panorama while wearing a $16,000 7 carat diamond tennis bracelet and a $130,000 Rolex Pearlmaster watch is now allegedly on food stamps and soliciting donations to a GoFundMe to try to meet the basic needs of herself and her two autistic children.

Sherrance Henderson’s GoFundMe campaign page states:

It is with great sadness that Ms Henderson seeks assistance to get her day in court.  It is vital that the sexual exploitation, harassment, and mistruths surrounding this case are exposed.  It is only with your help that this will be a possibility, as Ms Henderson has been left destitute by the corruption of the companies involved.

Timeline of the Poughkeepsie Golden Corral All-You-Can-Lose Franchise

3/13 Sherrance Henderson met with  Irwin Roberts, Golden Corral VP of Franchise Sales, at the Marriott Hotel lobby at Atlanta airport.  Roberts gave Henderson the Golden Corral Franchise Disclosure Document (FDD). (Source: Henderson v. Golden Corral documents)
6/14 Sam Starling, Vice President Franchisee Finance referred Sherrance Henderson to Brian Misenheimer, TD Banks’s SBA Loan Officer, to arrange SBA loan financing (Source: Henderson v. Golden Corral documents)
11/24/14 Sherrance Henderson signed the Golden Corral Franchising Systems, Inc.  Franchise Agreement (Source: Henderson v. Golden Corral documents)
3/19/15 The Town of Poughkeepsie Planning Board first referenced plans to open a Golden Corral, approving a review of the proposed site. (Source: Poughkeepsie Journal)
1/26/16 Sherrance Henderson announced that the Poughkeepsie Golden Corral would open summer, 2016 (Source: Poughkeepsie Journal)
4/8/16 Construction commenced (Source: Poughkeepsie Journal)
7/10/16 Sherrance Henderson closed her initial SBA loan at Donnie Solon at Davidson, Fuller and Sloan, in Johns Creek, Georgia. (Source: Henderson v. Golden Corral documents)
8/12/16 TD Bank requested financials from Plaintiff and refused to continue to fund NCD Builders until new financials were submitted. (Source: Henderson v. Golden Corral documents)
9/15/16 Sherrance Henderson pushed back opening to November 2016 citing a delay in construction due to a lack of supplies.(Source: Poughkeepsie Journal)
12/7/16 Sherrance Henderson pushed back the opening to New Year’s Eve due to a lack of supplies.(Source: Poughkeepsie Journal)
12/28/16 Henderson pushed back opening to Jan. 15, 2017, blaming a delay to an issue with the building’s gas line.(Source: Poughkeepsie Journal)
1/14/17 Henderson pushed back opening due to a scheduling issue with the permit inspector. (Source: Poughkeepsie Journal)
1/27/17 Sherrance Henderson opened her store at 2345 South Road, Poughkeepsie, New York. (Source: Poughkeepsie Journal)
2/7/17 Poughkeepsie Golden Corral temporarily closes for a week to “get all the kinks out” of its operation (Source: Poughkeepsie Journal)
2/12/17 GC Vice President of Franchise Development Darryl Webb Division President issued Plaintiff a first and final warning (Source: Henderson v. Golden Corral documents)
3/20/17 Sherrance Henderson receives termination letter from Golden Corral counsel Chappell Phillip, Esq. (Source: Henderson v. Golden Corral documents)
In its first 51 days, the Poughkeepsie store total income days was a respectable $771,664.47. (Source: Henderson v. Golden Corral documents)
3/21/17 The Poughkeepsie Journal publishes a picture of the the  sign taped to the door says “Sorry for any inconvince [sic] but we are closed until further notice.” (Source: Poughkeepsie Journal)
3/22/17 The Poughkeepsie Journal reported “A Golden Corral corporate representative confirms it ended its franchising relationship with Henderson, saying she failed to uphold the franchise agreement. Golden Corral spokesman Bill Marks calls the closure ‘unprecedented.’” (Source: Poughkeepsie Journal)
3/24/17 The New York State Department of Labor confirms it is investigating Sherrance Henderson for failing to pay employees. (Source: Poughkeepsie Journal)
10/3/17 Golden Corral confirms it is in talks with a new franchisee to open a restaurant in the Town of Poughkeepsie. (Source: Poughkeepsie Journal)
8/20/18 Sherrance Henderson files a pro se  lawsuit  U.S. District Court Southern District of New York for $2.2M against attorney Eric Sanders.  She alleges she paid him a $30,000 retainer and he did nothing.  His inaction worsened her franchise situation and caused her mental anguish and emotional distress. (Source: Henderson v. Eric Sanders lawsuit)
9/16/18 Building owner Anthony Segreti confirms he has reached a leasing deal with a Golden Corral franchisee Niral Patel to reopen in late September or early October. (Source: Poughkeepsie Journal)
3/28/19 Lawsuit filed by Sherrance Henderson in the Supreme Court of the State of New York, County of Duchess (Sherrance Henderson, v. Golden Corral Systems, Inc., TD Bank, Small Business Admin Office of the United States, Lance Trenary, Niral Patel, Anthony V Segreti, Jane Doe, And John Doe) seeks a judgment against the named defendants in the amount of $350,000,000.00 for “compensatory damages for back pay, front pay, past and future employment benefits, damages for emotional distress, punitive and/or exemplary damages…” (Source: Henderson v. Golden Corral documents)
11/13/18 Niral Patel reopens the Poughkeepsie Golden Corral franchise location.  (Source: Poughkeepsie Journal) It’s Niral Patel’s 5th Golden Corral Franchise

We’d Like to Hear from the Golden Corral & TD Bank Wealth Reduction Team

We invite those involved with the development, funding, opening and support of the Golden Corral franchise location in Poughkeepsie, NY to provide corrections, clarifications, rebuttals or alternative points-of-view.

We’d like to know:

  • Should Golden Corral have accepted Sherrance Henderson as a franchise owner?
  • Should TD Bank have loaded her up with millions in debt?
  • Should Golden Corral Systems, Inc. have terminated her 51-day-old franchise location – leaving her with no way to repay her crushing debt?
  • Should the SBA cover the losses TD Bank would incur on this bad loan – with taxpayer money?

Share your opinion on these issues and more.  Anonymous commenting is fine.

We’d love to hear from the notable participants in the Golden Corral Poughkeepsie Wealth-loss Program, including:

GOLDEN CORRAL

  • Lance Trenary, Golden Corral Senior CEO
  • Irwin Roberts, Golden Corral Senior Vice President of Franchising,
  • Richard Chase, Golden Corral Franchise Area Development Vice President
  • Jamie Apgar, the Division Administrator for Lance Trenary, CEO of Golden Corral Systems, Inc.
  • Sam Starling, Golden Corral VP Franchisee Finance
  • Darryl Web, Golden Corral Director of Development
  • Chappell Phillip, Esq. Golden Corral Legal Counsel
  • John Craig, GC Northeast Franchise Field Specialist
  • Jaymie Aimalefoa Golden Corral General Manager
  • Niral Patel, Golden Corral multi-unit franchise owner who took over the Poughkeepsie location
  • Adam Tolliver (kitchen manager)
  • Anthony Crocc (manager)

TD BANK

  • Brian Misenheimer VP SBA BDO, TD Bank (now VP with Cooperative Bank)
  • Marybeth Lewis, SBA CLS Supervisor II, SBA Commercial Loan Specialist at TD Bank
  • Jeffery Appleton, Vice President SBA Division National Franchise Finance, TD Bank (Now with Briar Capital)
  • Alisha Weicker, Credit Analyst II, Construction Specialist, AVP- SBA Construction Loan Specialist at TD Bank
  • Rebecca Acevedo
  • TD’s Attorney Kenneth B. Franklin of Duane Morris, LLP
  • William (Bill) Kugelmen, Esq., TD Bank’s lead lawyer

OTHERS

  • Anthony Segreti,  owner of Afran Reality
  • Aaron Parr, owner of NCD Builders
  • Sophia Davis, SBA Attorney General
  • Darren “Chip” Joyner, Associate of Ms. Henderson
  • Milton A. Dewar, associate of Ms. Henderson
  • Henderson attorney Donnie Solon at Davidson, Fuller and Sloan, in Johns Creek, Georgia
  • Henderson’s legal team at Jones and Walden, Atlanta, GA
  • Sherrance Henderson’s commercial lawyer William Kugelman Esq of Powell & Roman, LLC
  • Civil Rights Attorney Eric Sanders, the Sanders Firm, PC, New York, NY
  • Geoffrey Wilson, food and drink reporter, Poughkeepsie Journal

ALSO READ:

GOLDEN CORRAL Franchise Owner Sherrance Henderson Letter to U.S. Senate

FRANCHISE DISCUSSIONS by Company

ARE YOU FAMILIAR WITH THE GOLDEN CORRAL FRANCHISE OPPORTUNITY, TD BANK, SHERRANCE HENDERSON, OR THE POUGHKEEPSIE GOLDEN CORRAL FRANCHISE?  SHARE A COMMENT BELOW.

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TAGS: Golden Corral, Golden Corral franchise, Golden Corral franchise opportunity, Golden Corral complaints, Golden Corral Poughkeepsie, Sherrance Henderson,  Sherrance Henderson lawsuit, Golden Corral Lawsuit, TD Bank, TD Bank SBA Loans, TD Bank complaints, Niral Patel, Brian Misenheimer, Anthony Segreti, Attorney Eric Sanders, SBA fraud, SBA franchise loan fraud, failed franchises

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