Is the Gold Star franchisee required to conform to the Manual as it is in effect?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Compliance with Manual. The Manual includes, among other things, standards of operation (including menu content, recipes and presentation), standards of Restaurant management, operation, cleanliness and service, and standards concerning type, style and presentation of all food, beverages, furnishings, supplies, inventory, fixtures, interior and exterior decor and equipment used in connection with the Store. The Manual may be supplemented or changed (by reissuance, substitution, addition, deletion or other modification) by the COMPANY from time to time, by written bulletins, letters, notices, substitute pages, additional or revised manuals and other materials (all of which are included within the term "Manual"), and the FRANCHISEE shall at all times conform to the Manual as then in effect. FRANCHISEE shall be advised in writing of any change and shall have such reasonable time as the COMPANY deems necessary, from the date of such written notice, to implement fully any such change. The Manual, as presently constituted and as may be hereafter amended and supplemented by the COMPANY from time to time, is incorporated by reference herein and thereby made a part of this Agreement. Notwithstanding the foregoing, if the COMPANY makes any amendment or supplement to the Manual requiring any refurbishment of the Retail Location which would reasonably be expected to
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, franchisees must adhere to the standards and operating procedures outlined in the Manual. The Manual includes standards for restaurant management, cleanliness, service, menu content, recipes, and presentation. It also covers the type, style, and presentation of food, beverages, furnishings, supplies, inventory, fixtures, interior and exterior decor, and equipment used in the store.
Gold Star may modify or supplement the Manual periodically through written bulletins, letters, notices, substitute pages, or revised manuals. Franchisees will receive written notice of any changes and a reasonable timeframe to implement them. The Manual, including any amendments or supplements, is incorporated by reference into the Franchise Agreement.
This requirement ensures uniformity across all Gold Star Chili franchises, maintaining consistent quality, service, and customer satisfaction. By adhering to the Manual, franchisees contribute to the overall brand reputation and goodwill. Failure to comply with the Manual could be a breach of the Franchise Agreement, potentially leading to penalties or termination of the agreement.
However, Gold Star will not require the franchisee to fully refurbish the store during certain periods: (a) if the store will be newly-constructed in connection with this Agreement, (i) during the period commencing with the date of this Agreement and ending on the five-year anniversary of the store opening for business to the general public and (ii) the period commencing on the date which is one year prior to the expiration of the initial term of this Agreement, and ending on the last day of the initial term of this Agreement; or (b) if the store will not be newly-constructed in connection with this Agreement, (i) during the period commencing with the date of this Agreement and ending on the one-year anniversary of the store opening for business to the general public and (ii) the period commencing on the date which is one year prior to the expiration of the initial term of this Agreement.