Former Golden Corral Franchise Owner Loses $10M In 52 Days, Sues For Racial Discrimination

POUGHKEEPSIE, NY – Cornucopia Queen, Inc (CQI) DBA Golden Corral, which is owned by Sherrance Henderson, a disabled African American mother of two autistic children, is moving forward in the pre-trial preparation of her legal battle against Golden Corral Franchise Systems with allegations of racial discrimination and financial devastation. Golden Corral, one of the largest buffet restaurant chains in the country, has headquarters in Raleigh, North Carolina. In 2017, Henderson bought, built, and opened a Golden Corral franchise in Poughkeepsie, New York, but says that her license was unlawfully terminated after just 52 days in business. She is now seeking justice for a loss of almost $10 million.

CQI has added a renowned Civil Rights firm, The Hamlin Firm of Newark, New Jersey, to the case. This firm has defended cases for Malcolm X’s family legacy and media mogul Wendy Williams.

Henderson’s legal team recently uncovered during discovery that the financial damage inflicted was significantly higher than initially reported, surpassing $9.8 million. The funds lost were primarily derived from a medical malpractice settlement awarded to Henderson, which she meticulously invested to secure her and her family’s future through the Golden Corral franchise.

Case Background

In 2017, Sherrance Henderson’s company, Cornucopia Queen, Inc., invested her life savings of more than $9.8 million, primarily from a medical malpractice award, to open a Golden Corral franchise in Poughkeepsie, New York. She was the only Black American female franchisee at the time out of more than 350 Golden Corral franchise buffet locations, which her team alleges played a significant role in the sudden closure of her business. Just 52 days after opening, Golden Corral Franchise Systems terminated her license without allowing any opportunity to rectify alleged minor infractions. These infractions included three cigarette butts in an ashtray outside, a few pieces of debris in the parking lot, workers without sanitary hats, and minor temperature discrepancies in buffet trays.

The sudden termination led to the foreclosure of Henderson’s home and her Golden Corral franchise, forcing her into financial ruin. Ms. Henderson, once a multi-millionaire, now relies on food stamps and other state and federal resources for survival. She alleges that her treatment by Golden Corral Franchise Systems was rooted in racial, gender, and disability discrimination. 

Cornucopia Queen, Inc., was not given an opportunity to address the alleged infractions, unlike other non-Black and male franchise owners who were given ample time to make corrections. For instance, a white male owner and a non-Black female owner were given significant time to rectify similar issues, while Henderson was not afforded the same consideration.

Ms. Henderson’s struggle began in 2013 when she signed a 15-year franchise contract with Golden Corral. The franchisor allegedly would not allow her to move forward with a territory unless she brought in partners, ideally men. After complying with the demand, she worked with the City of Newark, New Jersey, to purchase a license for her franchisee, where her business would benefit from considerable tax revenue breaks. However, she says that Golden Corral Franchise Systems “red-lined” the whole city and refused to honor the license agreement of her ownership. As a result, Cornucopia Queen, Inc. was strong-armed into accepting the Poughkeepsie location – one she did not purchase — and doing business in a community where she had no relationships, no financial network, and no family ties.

With the court’s approval to pursue punitive damages, Ms. Henderson and her legal team are determined to seek justice for the loss of her life savings and the unjust closure of her business.

Legal Proceedings

The case, titled 19 CV 2878 (NSR), is being heard 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 acknowledged the significant financial and emotional damages inflicted upon Ms. Henderson, allowing her to pursue punitive damages against Golden Corral Franchise Systems.

Meet the Legal Team

Henderson’s formidable legal team is led by the Ray Hamlin Firm, renowned for representing media mogul Wendy Williams in her federal lawsuit against HOT 97 radio station, protecting Malcolm X’s family legacy, and being among the top 50 awarded judgment attorneys in New Jersey. Isaac Wright Jr. never gave up on fighting for truth, which led to his exoneration, and now focuses on defending the wrongly accused and challenging corrupt institutions.

About

Founded in 2015 by Sherrance Henderson, Cornucopia Queen Inc. emerged from Henderson’s entrepreneurial ambitions and her commitment to providing for her family. Henderson, an alum of Howard University and Johns Hopkins University Carey Business School, has authored over seven books and continually seeks to overcome personal and professional obstacles despite her physical disability and the challenges of raising two children with autism. She is raising funds online via a GoFundMe page.