Who must find the general contractor acceptable for the construction of a Gold Star store?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.7.4 the FRANCHISEE will employ a qualified licensed general contractor who is reasonably acceptable to the COMPANY to construct the Store and to complete all improvements. The FRANCHISEE will obtain and maintain in force during the entire period of construction the insurance required by Section 18 below.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the franchisee is responsible for employing a qualified, licensed general contractor to construct the store. However, this contractor must be reasonably acceptable to Gold Star. This means that while the franchisee has the freedom to choose their contractor, Gold Star retains the right to ensure the contractor meets their standards.
This requirement ensures that the construction of the Gold Star location aligns with the brand's standards and specifications. By having approval over the general contractor, Gold Star can maintain consistency and quality across all its franchise locations. This helps protect the brand's reputation and ensures customers receive a consistent experience regardless of location.
For a prospective franchisee, this means they need to factor in the time and effort required to find a contractor that not only meets their own criteria but also satisfies Gold Star's requirements. It would be prudent to understand Gold Star's criteria for contractor approval early in the process to avoid delays or complications during the construction phase. Franchisees should inquire about any pre-approved lists or specific qualifications Gold Star looks for in a general contractor.