Who bears the expense for replacement Trainees attending Gold Star's initial training program?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that a Principal Trainee ceases to own equity in FRANCHISEE or a Manager Trainee ceases to be employed by FRANCHISEE, FRANCHISEE shall, at the COMPANY's option, cause another Principal Trainee or Manager Trainee to
attend and successfully complete the COMPANY's initial training program, such that at all times FRANCHISEE shall comply with the Trainee requirements set forth in this Section 2.1. Any such initial training for replacements Trainees shall be at FRANCHISEE's expense pursuant to Section 2.2 below.
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 expenses associated with initial training for replacement trainees. Specifically, if a Principal Trainee (an owner) ceases to own equity in the franchise or a Manager Trainee stops being employed by the franchisee, Gold Star has the option to require the franchisee to have another Principal or Manager attend the initial training program.
This means that if a manager or owner who has completed the initial training leaves the business, the franchisee will have to pay for the replacement's training. This could include costs related to the training program itself, as well as travel, lodging, and other incidental expenses.
Franchisees should factor in potential turnover when budgeting for training costs. It is important to note that Gold Star may also require additional training programs, such as refresher training or workshops for new products, and the franchisee is generally responsible for the expenses associated with these programs as well.