Does Gold Star designate a protected territory for franchisees?

According to Gold Star's 2025 Franchise Disclosure Document, Gold Star does designate a protected territory for franchisees. Specifically, before a franchisee opens their Gold Star restaurant, Gold Star will designate a protected territory for them, as stated in Section 1.3 of the Franchise Agreement.

This protected territory is a significant benefit for franchisees as it provides a defined area where they can operate without direct competition from other Gold Star franchises. This exclusivity can help franchisees establish a strong customer base and maximize their revenue potential within their designated territory.

However, the FDD does not specify the size or characteristics of the protected territory, nor does it detail any conditions or exceptions that may apply. A prospective franchisee should inquire about the specific terms and conditions related to the protected territory, including its geographic boundaries, population density, and any potential limitations on the franchisee's ability to operate within that area. Understanding these details is crucial for assessing the potential of the franchise and making informed business decisions.