What is Gold Star's definition of a Franchised Non-Traditional Outlet?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
At the end of 2024 there were 47 Franchised Traditional Outlets in operation and 1 Franchised Non-Traditional Outlets in operation. A Franchised Traditional Outlet is defined as a noncompany-owned Store that is free standing or on an end cap of a strip center and has a drive thru. A Franchised Non-Traditional Outlet is defined as a noncompany-owned Store located in a mall, amusement park, fairground, sports stadium, zoo or airport.
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 Non-Traditional Outlet is defined as a noncompany-owned store located in a mall, amusement park, fairground, sports stadium, zoo, or airport. As of the end of 2024, there was only one such outlet in operation. This is in contrast to a Franchised Traditional Outlet, which Gold Star defines as a noncompany-owned store that is free standing or on an end cap of a strip center and has a drive thru. At the end of 2024, there were 47 Franchised Traditional Outlets in operation.
For a prospective franchisee, this distinction is important because the location type can significantly impact operational costs, sales volume, and overall profitability. Non-traditional locations often have higher rent and may be subject to specific operating hours or restrictions imposed by the venue (e.g., a stadium or airport). However, they may also benefit from high foot traffic and a captive audience.
Understanding the differences between traditional and non-traditional outlets is crucial for making an informed investment decision. Gold Star provides financial performance representations specifically for Franchised Traditional Outlets, but the FDD does not include specific financial performance data for the single Franchised Non-Traditional Outlet. A potential franchisee should inquire about the performance of the non-traditional outlet and the factors that contribute to its success or challenges.