How can the Gold Star franchise agreement be modified?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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 franchise agreement can be modified through the System Standards. Gold Star states that franchisees must adhere to the uniform specifications, standards, operating procedures, and rules that Gold Star prescribes for the development and operation of the store. These standards include, but are not limited to, the ingredients, methods of food preparation and service, and weight, quality and dimensions of menu items and other products served in the store.
Gold Star has the sole and absolute discretion to periodically modify and supplement these System Standards. Franchisees must operate their business in a way that preserves and builds the goodwill of all restaurants and of Gold Star itself, and they must comply with every System Standard. Franchisees are not allowed to deviate from these standards during the term of the agreement.
Any System Standards that are prescribed from time to time in the manual or otherwise communicated to the franchisee in writing will be considered provisions of the Franchise Agreement, as if they were fully written out in the agreement itself. All references to the agreement include all System Standards as periodically modified.