Who bears the expense of the signage for a Gold Star Chili franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.11 Upkeep of Store.
FRANCHISEE shall, at its sole expense, repair and paint the interior and exterior of the Retail Location at reasonable times or upon the reasonable request of the COMPANY.
FRANCHISEE shall, at its sole expense, at all times maintain the interior and exterior of the Store, the signs, furniture, fixtures and equipment therein contained, and the surrounding area in a clean and attractive condition satisfactory to the COMPANY and in compliance with the COMPANY's design, appearance, decor and other standards.
- 5.12 Refurbishment of Store.
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 expenses related to the signage of their Gold Star Chili location. Specifically, the franchisee must maintain the signs at their own expense. This includes keeping the signs in a clean and attractive condition that meets Gold Star's standards.
This requirement extends beyond just basic maintenance. If Gold Star requests a refurbishment of the store to align with the current image of the brand, the franchisee is also responsible for the costs associated with installing new signs as part of that refurbishment. This could involve structural changes or modifications to existing improvements to ensure the signage conforms to the updated trade dress and presentation of the Gold Star Chili brand.
There are some limitations to this. Gold Star will not require a full refurbishment, including new signs, for newly-constructed stores during the first five years of operation or during the year before the franchise agreement's initial term expires. For stores that are not newly constructed, this period is limited to the first year of operation. However, outside of these specific timeframes, the franchisee should be prepared to cover the costs of signage as part of ongoing maintenance, repairs, and potential refurbishments to keep the restaurant aligned with Gold Star's brand standards.