factual

What is Gold Star's definition of a Franchised G5 Outlet?

Gold_Star Franchise · 2025 FDD

Answer from 2025 FDD Document

Table 1 - Gold Star Chili Franchised Traditional Outlets
Range Number of Restaurants Meeting or Exceeding the Average
Tier Number Average Gross Sales Median Gross Sales Low End High End Number Percentage
of Number
Stores
Top $ $1,592,551.41 $1,497,802.33 $1,285,629.03 $1,928,629.03 5 41.7%
25% 12
Top $1,355,631.81 $1,242,198.60 $1,057,612.66 $1,928,629.03 10 41.7%
50% 24
Top $1,207,778.82 $1,119,733.62 $779,464.33 $1,928,398.90 12 33.3%
75% 36

Some Outlets have sold this amount. Your individual results may differ. There is no assurance that you'll sell as much.

At the end of 2024, there were 40 Franchised G5 Outlets. A Franchised G5 Outlet is a Franchised Traditional Outlet that has implemented the current published design standards of facility modifications and menu. All new Restaurants in the System are now required to be G5 Outlets. The facility design standards include new building signage, awnings, paint colors, and drive thru equipment with respect to the exterior and new furniture, cabinetry, paint colors, and graphics with respect to the interior. The menu (which has been implemented at all Gold Star locations) includes chili products, fresh burgers, gourmet fries and salads. The annualized sales data for the Franchised G5 Outlets is a subset of and included in the annualized sales data for all Franchised Traditional Outlets. The financial performance representations in Table 2 below are historical based on information from indicated subsets of the 40 Franchised G5 Outlets that were open for the full fiscal year, January 1, 2024 through December 31, 2024. The entire set of 40 Franchised G5 Outlets experienced average Gross Sales of $1,152,691.02(with 15 outlets, or 37

Source: Item 19 — Financial Performance Representations (FDD pages 46–48)

What This Means (2025 FDD)

According to Gold Star's 2025 Franchise Disclosure Document, a Franchised G5 Outlet is a Franchised Traditional Outlet that has been updated to meet the brand's current design standards for facility modifications and menu. These design standards include updated building signage, awnings, paint colors, and drive-thru equipment on the exterior, along with new furniture, cabinetry, paint colors, and graphics for the interior. The updated menu, which is now implemented at all Gold Star locations, features chili products, fresh burgers, gourmet fries, and salads. All new Gold Star restaurants are required to be G5 Outlets.

At the end of 2024, there were 40 Franchised G5 Outlets. The financial performance data for these G5 Outlets is included within the overall data for all Franchised Traditional Outlets. The 40 Franchised G5 Outlets experienced average Gross Sales of $1,152,691.02, with 15 outlets (37.5%) exceeding this average. The median Gross Sales for this group was $1,093,273.54. The lowest-performing G5 Outlet had Gross Sales of $528,997.30, while the highest-performing one reached $1,928,398.90.

Prospective franchisees should note that while the G5 designation reflects updated standards, the financial performance can vary significantly. The FDD emphasizes that individual results may differ, and there is no guarantee of achieving similar sales figures. Reviewing the range of sales data, from the low to high performers, can provide a more realistic expectation for potential revenue. Additionally, franchisees should inquire about the specific costs associated with implementing the G5 design standards during the initial build-out or renovation of a Gold Star location.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.