How can the Gold Star franchise agreement and its appendices be modified?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
5. STANDARDS OF OPERATION.
5.1 System Standards. FRANCHISEE acknowledges and agrees that every detail of the System is important, not only to FRANCHISEE but also to the COMPANY and other Gold Star Chili franchisees, in order to develop and maintain uniform operating standards, increase the demand for the products and services offered by all franchisees, establish and maintain a reputation for the highest degree of quality, service, cleanliness and customer satisfaction, and to protect the goodwill of all Gold Star Chili franchises. FRANCHISEE further acknowledges and agrees that a fundamental requirement of the System, this Agreement, and other Gold Star Chili franchises is adherence by all franchisees to the uniform specifications, standards, operating procedures and rules prescribed by the COMPANY for the development and operation of the Store, including, without limitation, standards and specifications regarding ingredients, methods of food preparation and service, and weight, quality and dimensions of menu items and other products served in the Store (collectively referred to as "System Standards"). Accordingly, FRANCHISEE will conduct and operate the Business at all times in a manner that will preserve and build the goodwill of all Restaurants and of the COMPANY, will comply with each and every System Standard, as periodically modified and supplemented by the COMPANY in its sole and absolute discretion, and will not deviate from the System Standards during the term of this Agreement. System Standards prescribed from time to time in the Manual or otherwise communicated to FRANCHISEE in writing will constitute provisions of this Agreement as if fully set forth in this Agreement. All references to this Agreement include all System Standards as periodically modified.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, the System Standards, which include uniform specifications, standards, operating procedures, and rules prescribed by Gold Star for the development and operation of the store, can be modified and supplemented by Gold Star in its sole and absolute discretion. These System Standards, as periodically modified and supplemented by Gold Star, will constitute provisions of the Franchise Agreement as if fully set forth in the agreement. All references to the Franchise Agreement include all System Standards as periodically modified.
This means that Gold Star has the right to unilaterally change the operating standards of the franchise, and these changes become part of the franchise agreement. This could include changes to ingredients, food preparation methods, service standards, and the weight, quality, and dimensions of menu items.
For a prospective franchisee, this implies that the terms and conditions under which they operate their Gold Star franchise can change during the term of the agreement. Franchisees must adhere to these changes, and failure to do so would be a breach of the agreement. It is important for a franchisee to stay informed of any changes communicated by Gold Star in writing, as these changes are considered part of the agreement.