Is a franchisee entitled to compensation or reimbursement for services performed during the Gold Star training program?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
You are responsible for all travel, lodging, meals and other related or incidental expenses incurred by you or any of your Managers, employees, owners or other representatives attending, or otherwise regarding, the initial training program. You are not entitled to any compensation or reimbursement for any services performed by any attendee during the training program.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are not entitled to compensation or reimbursement for services performed during any training programs. This applies to both the initial training program for the franchisee and their managers, as well as the initial crew training program. Franchisees are responsible for covering all expenses related to training, including travel, lodging, and meals for themselves, their managers, employees, and other representatives.
This policy means that a prospective Gold Star franchisee must factor in the costs of training when budgeting for their new business. These costs can include not only the direct expenses of travel and accommodation but also the indirect cost of lost productivity while the franchisee and their staff are away from the restaurant for training. The franchisee will need to cover the wages of their employees while they are in training, even though they are not yet generating revenue for the business.
Gold Star's policy is fairly standard in the franchise industry, where it is common for franchisees to bear the costs of training. This arrangement ensures that franchisees have a vested interest in the success of their training and are motivated to learn the Gold Star system. While the costs can be significant, the training is designed to equip franchisees and their staff with the skills and knowledge necessary to operate a successful Gold Star restaurant.
In addition to the initial training, Gold Star may require or offer additional training programs. While Gold Star does not charge a fee for mandatory additional training programs, franchisees are still responsible for all travel, lodging, and meal expenses associated with these programs. Optional training programs may incur a standard fee charged by Gold Star, in addition to the franchisee's travel and lodging costs.