Who bears the expense of refurbishing the Gold Star store?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
At the request of the COMPANY, FRANCHISEE will refurbish the Store at its own expense to conform to the trade dress, color schemes and presentation of the Marks in a manner consistent with the image then in effect for new Gold Star Chili restaurants under the System.
Such refurbishment may include structural changes, installation of new equipment and signs, remodeling, redecoration, and modifications to existing improvements.
FRANCHISEE will complete the refurbishing within the time period specified by the COMPANY pursuant to Section 3.3 hereof.
FRANCHISEE acknowledges that the COMPANY cannot estimate the costs of refurbishment but any request by the COMPANY will be in its reasonable discretion.
Notwithstanding the foregoing, the COMPANY shall not require FRANCHISEE to fully refurbish the Store during the following periods: (a) if the Store will be newly-constructed in connection with this Agreement, (i) during the period commencing with the date of this Agreement and ending on the five-year anniversary of the Store opening for business to the general public and (ii) the period commencing on the date which is one year prior to the expiration of the initial term of this Agreement, and ending on the last day of the initial term of this Agreement; or (b) if the Store will not be newly-constructed in connection with this Agreement, (i) during the period commencing with the date of this Agreement and ending on the one-year anniversary of the Store opening for business to the general public and (ii) the period commencing on the date which is one year prior to the expiration of the initial term of this Agreement.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the franchisee is responsible for the expense of refurbishing the store. Specifically, at the request of Gold Star, the franchisee must refurbish the store at their own expense to conform to the current trade dress, color schemes, and presentation of the brand. This refurbishment may include structural changes, installation of new equipment and signs, remodeling, redecoration, and modifications to existing improvements. The franchisee must complete the refurbishment within the time period specified by Gold Star.
Gold Star acknowledges that they cannot estimate the costs of refurbishment, but any request by Gold Star will be in its reasonable discretion. However, Gold Star will not require the franchisee to fully refurbish the store during certain periods. For newly-constructed stores, this period is from the date of the agreement until the five-year anniversary of the store opening, and during the year prior to the expiration of the initial term of the agreement. For stores that are not newly-constructed, the period is from the date of the agreement until the one-year anniversary of the store opening, and during the year prior to the expiration of the initial term of the agreement.
This means that a Gold Star franchisee needs to be prepared to invest potentially significant sums to keep their store up-to-date with the brand's image standards. While there are some limitations on when Gold Star can demand a full refurbishment, franchisees should budget for these costs and factor them into their financial projections. It is important for prospective franchisees to discuss potential refurbishment costs and schedules with existing franchisees during their due diligence.