What is considered a 'New Restaurant' according to the Gold Star FDD?

According to the 2025 Gold Star FDD, a 'New Restaurant' is defined as a restaurant that is not a 'Transferred Restaurant'. A 'Transferred Restaurant' is one that operates from a location where a Gold Star Chili restaurant was operating at any point during the six months immediately prior. This distinction is important because it affects certain obligations and fees outlined elsewhere in the FDD.

For a prospective franchisee, this definition clarifies whether the restaurant they are opening will be considered 'new' or 'transferred'. This is significant because the classification impacts the fees and obligations associated with the franchise. A new restaurant would be subject to the standard initial franchise fees and requirements for a new location, while a transferred restaurant might have different financial implications or operational considerations.

Understanding this definition is crucial for franchisees when evaluating potential locations. If a location was previously a Gold Star Chili restaurant within the last six months, it would be classified as a 'Transferred Restaurant,' which could affect the financial and operational aspects of the franchise agreement. Franchisees should carefully consider the implications of opening a transferred restaurant versus a new restaurant, as the terms and conditions may vary.