What is the deadline for completing the initial training program for a Gold Star franchise, relative to the franchise agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
2.1 Number of Trainees. The following persons must attend and successfully complete to the COMPANY's satisfaction the COMPANY's initial training program prior to the earlier of the opening of the Restaurant or the expiration of six (6) months from the date of this Agreement, and any such additional training programs as the COMPANY may from time to time require, including, without limitation, refresher training, workshops for new Products and other programs (each such person, a "Trainee"): (a) if the FRANCHISEE is an individual, either the FRANCHISEE or two (2) persons who are designated as Managers or (b) if the FRANCHISEE is a corporation or limited liability company, either a person who has an interest in FRANCHISEE (each, a "Principal," and collectively, the "Principals") or two (2) persons who are designated as Managers. In the event that a Principal Trainee ceases to own equity in FRANCHISEE or a Manager Trainee ceases to be employed by FRANCHISEE, FRANCHISEE shall, at the COMPANY's option, cause another Principal Trainee or Manager Trainee to
attend and successfully complete the COMPANY's initial training program, such that at all times FRANCHISEE shall comply with the Trainee requirements set forth in this Section 2.1. Any such initial training for replacements Trainees shall be at FRANCHISEE's expense pursuant to Section 2.2 below.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees must ensure that designated trainees complete the initial training program to the company's satisfaction before the earlier of two deadlines: the restaurant's opening or six months from the date of the franchise agreement. This requirement applies to either the franchisee (if an individual) or two designated managers, or if the franchisee is a corporation or LLC, a principal or two designated managers.
This strict timeline means prospective Gold Star franchisees need to plan and schedule training promptly after signing the franchise agreement to avoid delays in their restaurant opening. Failing to meet this training deadline could potentially delay the opening or even put the franchise agreement at risk.
If a trainee leaves the company or no longer holds equity in the franchise, Gold Star has the option to require the franchisee to have another principal or manager complete the initial training program. The franchisee would bear the expense for this replacement training, highlighting the importance of carefully selecting and retaining trained personnel. Gold Star also may require additional training programs from time to time, including refresher training and workshops for new products.