Does Gold Star enter into franchise agreements with its company-owned outlets?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Gold Star defines "company owned" stores as those stores which are controlled by Gold Star directly through equity ownership. Gold Star does not enter into franchise agreements with any of its company owned outlets, but it is currently the practice of Gold Star to cause its company owned outlets to pay the same fees and comply with the same standards and obligations as it requires of its franchisees.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 7–10)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star does not enter into franchise agreements with its company-owned outlets. As of December 31, 2024, Gold Star had 9 company-owned Restaurants in operation. Gold Star defines company-owned stores as those controlled directly through equity ownership.
Although Gold Star does not have franchise agreements with its company-owned outlets, the FDD states that it is Gold Star's current practice to cause its company-owned outlets to pay the same fees and comply with the same standards and obligations as it requires of its franchisees. This means that even though the company-owned locations are not technically franchises, they operate under similar financial and operational guidelines.
This practice ensures consistency across all Gold Star locations, whether franchised or company-owned. Prospective franchisees can expect a standardized system, with all locations adhering to the same rules and contributing similar fees. This can be seen as a positive aspect, as it demonstrates a commitment to uniformity and brand standards across the Gold Star system.