Can Gold Star establish company-owned outlets using the Marks?

According to the 2025 Gold Star FDD, Gold Star can establish company-owned outlets using the Marks. Gold Star states that it has established and plans to continue establishing company-owned outlets. They also plan to use other channels of distribution using the Marks, including company-owned Restaurants and distribution through grocery stores, convenience stores, other food service establishments, establishments or concessions located within other facilities (such as zoos, airports, race tracks, amusement parks, fairgrounds, sports stadiums, special events and the like) and food brokers, and also may expand through or establish other traditional and non-traditional distribution channels, methods and venues.

This means that a Gold Star franchisee may face competition from company-owned restaurants or other distribution channels that sell Gold Star products. The franchisee's territory is limited to the operation of one Gold Star Restaurant at a specific Retail Location, and while a Protected Territory is designated in the Franchise Agreement, Gold Star retains the right to establish Special Purpose Outlets within that territory.

Special Purpose Outlets are defined as Gold Star Restaurants located inside shopping malls or centers, zoos, airports, race tracks, amusement parks, fairgrounds, sports stadiums, hospitals, factories, bars, schools, gas stations, and special events. This extensive list of potential locations for Special Purpose Outlets means that a franchisee's Protected Territory could contain other Gold Star locations, impacting their potential customer base and sales. Prospective franchisees should carefully consider the implications of these potential competitive outlets when evaluating a Gold Star franchise opportunity.