What is considered a 'New Restaurant' for the purposes of Gold Star franchise fees?

According to Gold Star's 2025 Franchise Disclosure Document, a 'New Restaurant' is defined specifically in relation to franchise fees. It's important to understand this definition because the initial franchise fee varies depending on whether the restaurant is considered 'new' or 'transferred,' and also on the number of existing Gold Star franchises the franchisee already operates. This can significantly impact the initial investment required.

For Gold Star, a 'New Restaurant' is any 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 previous six months. This distinction is crucial because it affects the initial franchise fee a new franchisee will pay. If a location has been a Gold Star within the last six months, it's considered a 'Transferred Restaurant,' and a different fee structure applies.

In practical terms, if a prospective Gold Star franchisee is looking at a location that has been vacant for more than six months, or has never been a Gold Star restaurant, it will be considered a 'New Restaurant.' This means the franchisee will pay the initial franchise fee applicable to new restaurants, which varies based on how many existing Gold Star franchises they own. Conversely, if the location was a Gold Star within the last six months, it's a 'Transferred Restaurant,' and the initial franchise fee will be the lesser of the fee for a new restaurant or $25,000.