As of December 31, 2024, how many franchised Gold Star Restaurants were in operation?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Gold Star's 2025 Franchise Disclosure Document, as of December 31, 2024, there were 48 franchised Gold Star Restaurants in operation. In addition to the franchised locations, there were also 9 company-owned Gold Star Restaurants operating in the United States at that time.
This information is relevant for prospective franchisees as it provides a snapshot of the brand's footprint and business model. The presence of both franchised and company-owned restaurants is a fairly common arrangement in franchising. Company-owned stores can serve as testing grounds for new products or operational strategies, while franchised locations allow for faster expansion using the capital and local knowledge of franchisees.
The FDD also notes that officers, directors, or shareholders of Gold Star, and/or their relatives, own a substantial number of franchises. This could indicate a strong belief in the brand and its business model from within the company's leadership. However, prospective franchisees may want to inquire about the support and resources available to all franchisees, regardless of their affiliation with the company's leadership, to ensure a level playing field.
Understanding the balance between franchised and company-owned locations, as well as the ownership structure of existing franchises, can give potential franchisees a more comprehensive view of the Gold Star franchise system and its potential for success.