Is a Gold Star franchisee allowed to operate the Business at any location other than the Retail Location?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.4 Additional Stores.
The rights granted FRANCHISEE under this Agreement relate solely to the Retail Location.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the rights granted to a franchisee relate solely to the Retail Location specified in the franchise agreement. This means that a franchisee's rights and obligations under the agreement are tied to a single, fixed location. Gold Star franchisees are generally expected to operate their businesses from this designated site.
This restriction ensures that Gold Star can manage its brand and service standards effectively. By limiting each franchise to a specific location, Gold Star can better control market saturation, maintain quality control, and manage the customer experience. It also allows Gold Star to offer protected territories, preventing direct competition between franchisees.
However, Gold Star may establish or license Special Purpose Outlets within a franchisee's protected territory. These Special Purpose Outlets are defined as Gold Star Chili 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 allows Gold Star to reach customers in diverse settings without granting franchisees the right to operate outside their Retail Location.