Does Gold Star designate a protected territory for the franchisee?

According to the 2025 Gold Star Franchise Disclosure Document, Gold Star does designate a protected territory for its franchisees. Specifically, Item 11 states that Gold Star will designate a protected territory for the franchisee, referencing Section 1.3 of the Franchise Agreement.

This means that as a Gold Star franchisee, you will be granted a specific geographic area where the franchisor will not establish or operate, nor license others to establish or operate, a competing Gold Star restaurant. This protection aims to provide franchisees with a competitive advantage within their designated territory, allowing them to build a customer base without direct competition from other Gold Star locations.

Prospective franchisees should carefully review Section 1.3 of the Franchise Agreement to fully understand the terms and conditions of the protected territory, including its size, any exceptions, and the duration of the protection. Understanding these details is crucial for assessing the potential of the franchise and making informed business decisions.