Must the contractor chosen by a Gold Star franchisee be reasonably satisfactory to Gold Star?

According to Gold Star's 2025 Franchise Disclosure Document, a franchisee's choice of contractor for any construction, refurbishing, or alterations must be reasonably satisfactory to Gold Star. Furthermore, Gold Star retains the right to participate in any punchlist or other inspections related to the work.

This requirement ensures that all construction and modifications align with Gold Star's standards and specifications, maintaining uniformity across all franchise locations. This is further emphasized by the requirement that the Retail Location be constructed, refurbished, or altered only according to plans and specifications approved in writing by Gold Star in advance, which cannot be altered or modified without prior written approval from Gold Star.

For a prospective franchisee, this means they cannot simply hire any contractor. They must select one that meets Gold Star's approval. This may limit the franchisee's choices and potentially increase costs if Gold Star's preferred contractors are more expensive. However, it also ensures that the construction work meets Gold Star's standards, which can help maintain the brand's quality and consistency. The franchisee is also required to employ a qualified licensed general contractor who is reasonably acceptable to Gold Star to construct the store and to complete all improvements and obtain and maintain insurance during the entire period of construction.

Gold Star also provides standard plans and specifications for the design and configuration of a prototype Restaurant, including exterior and interior design and layout, fixtures, furnishings, equipment, and signs to the franchisee's architect, who also must be reasonably acceptable to Gold Star. This proactive approach helps to streamline the construction process and ensure compliance with brand standards from the outset.