What documents must a Gold Star franchisee sign to operate a store in an additional location?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.4 Additional Stores.
The rights granted FRANCHISEE under this Agreement relate solely to the Retail Location.
In order to operate a Store in an additional location, FRANCHISEE must apply for and be granted approval (the COMPANY is not obligated to grant such approval) to purchase a separate franchise, satisfactorily complete the site selection process and sign and comply with a separate franchise agreement (which must be the COMPANY's then current form
- of franchise agreement) and pay additional fees equal to the COMPANY's then current fees, including but not limited to initial franchise fees, continuing franchise fees, advertising and other fees.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee who wishes to open an additional Gold Star location must apply for and receive approval to purchase a separate franchise. Gold Star is not obligated to grant this approval. The franchisee must also satisfactorily complete the site selection process. Finally, the franchisee must sign and comply with a separate franchise agreement, which must be Gold Star's then-current form of agreement.
In addition to signing a new franchise agreement, the franchisee must also pay additional fees. These fees are equal to Gold Star's then-current fees, including, but not limited to, initial franchise fees, continuing franchise fees, advertising fees, and other fees. This means that opening a second location involves a similar financial commitment as opening the first, with the franchisee needing to budget for these costs.
This requirement to sign a new franchise agreement and pay all associated fees for each additional location is a common practice in franchising. It allows Gold Star to maintain control over its brand and ensure that each location meets its standards. It also provides Gold Star with an additional revenue stream as its franchisees expand. For a prospective franchisee, this highlights the importance of carefully considering the costs and obligations associated with expanding beyond a single unit.