Is a Gold Star franchisee free to solicit customers in any geographic area?

According to the 2025 Gold Star FDD, franchisees are permitted to solicit customers in any geographic area. Gold Star, its affiliates, and other franchisees also have the right to solicit customers or accept orders from any location, including a franchisee's protected territory or another franchisee's territory. This means that while a franchisee may have a protected territory, they are not restricted from seeking business outside of it, and similarly, other Gold Star outlets can solicit customers within their territory.

This policy creates both opportunities and potential challenges for franchisees. On one hand, it allows them to expand their customer base beyond their immediate geographic area, potentially increasing revenue. On the other hand, it means they may face competition from other Gold Star franchisees or company-owned outlets in their own protected territory. This lack of exclusivity is a common practice in franchising, as franchisors often seek to maximize brand presence and market penetration.

It is important for prospective franchisees to understand that while they have the freedom to solicit customers anywhere, Gold Star does not guarantee any exclusivity beyond the defined protected territory. The FDD also states that Gold Star may establish company-owned outlets and other distribution channels, which could further impact a franchisee's market share. Therefore, franchisees should carefully consider the competitive landscape and develop effective marketing strategies to attract and retain customers in their area.