Besides franchising, what other business activities does Gold Star engage in?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Gold Star owns, operates and manages chili restaurants known as GOLD STAR and GOLD STAR CHILI Restaurants (each a "Restaurant"), sells Restaurant franchises (each a "Franchise") to others (each a "Franchisee"), and operates Gold Star's production and warehouse facility, the
sole purpose of which is to produce proprietary food and other products which Gold Star then sells to our third-party distributor.
Gold Star, through its production and warehouse facility, sells its proprietary food and other products to its third-party distributor, who in turn sells these products and others to Franchisees. Gold Star also sells its chili through other traditional and non-traditional distribution channels, methods and venues, including other food service establishments or concessions, zoos, airports, racetracks, amusement parks, fairgrounds, sports stadiums, multi-branded facilities, hospitals, bars, special events, grocery stores, convenience stores and food brokers. Gold Star also sells other products approved by Gold Star for Restaurant sale or use to Restaurant Franchisees, licensees and others.
As of December 31, 2024, there were 48 franchised Restaurants and 9 company-owned Restaurants in operation in the United States. Officers, directors or shareholders of Gold Star and/or their relatives wholly or partly own a substantial number of Franchises. Gold Star defines "company owned" stores as those stores which are controlled by Gold Star directly through equity ownership. Gold Star does not enter into franchise agreements with any of its company owned outlets, but it is currently the practice of Gold Star to cause its company owned outlets to pay the same fees and comply with the same standards and obligations as it requires of its franchisees.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 7–10)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, Gold Star engages in several business activities besides franchising. Gold Star owns, operates, and manages its own chili restaurants, identified as GOLD STAR and GOLD STAR CHILI Restaurants. As of December 31, 2024, Gold Star operated 9 company-owned restaurants. These restaurants are controlled directly through equity ownership, and while they do not have franchise agreements, Gold Star ensures they pay the same fees and adhere to the same standards as its franchisees.
In addition to operating restaurants, Gold Star runs a production and warehouse facility. The primary function of this facility is to produce proprietary food and other products. These products are then sold to a third-party distributor, who in turn sells them to Gold Star franchisees. This system ensures that franchisees have access to the necessary ingredients and products to maintain consistency across all locations.
Gold Star also sells its chili through various distribution channels beyond its franchise network. These channels include traditional and non-traditional venues such as other food service establishments, concessions, zoos, airports, racetracks, amusement parks, fairgrounds, sports stadiums, multi-branded facilities, hospitals, bars, special events, grocery stores, convenience stores, and food brokers. This diversified approach to distribution allows Gold Star to reach a broader customer base and increase brand visibility. Gold Star also sells other approved products to its franchisees, licensees, and others for Restaurant sale or use.