Is the Gold Star franchisee responsible for obtaining all permits and certifications required for the lawful construction of the Store?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
e, at no cost to the FRANCHISEE:
- 4.6.1 a schedule of all equipment necessary to operate the Store; and
- 4.6.2 a list of approved sources for architectural services, supplies, equipment, furniture, advertising and marketing materials, computer software and hardware, and other items necessary for the operation of the Store.
- 4.7 Pre-Construction Requirements. Prior to commencing any construction on the Store, the FRANCHISEE will comply with all of the following requirements:
- 4.7.1 the FRANCHISEE will comply with all federal, state and local laws, codes and regulations, including the applicable provisions of the ADA, regarding the construction, design and operation of the Store.
- 4.7.2 the FRANCHISEE will be responsible for obtaining all zoning classifications and clearances that may be required by state or local laws, ordinances, regulations that may be necessary or advisable owing to any restrictive covenants at the Retail Location. After having obtained such approvals and clearances, the FRANCHISEE will submit to the COMPANY, for the COMPANY's approval, final plans for construction based on the preliminary plans and specifications. The COMPANY's review and approval of plans will be limited to review of such plans to assess compliance with the COMPANY's design standards for a typical Gold Star Chili restaurant, including such items as trade dress and presentation of the Marks. The COMPANY's review is not designed to assess compliance with federal, state or local laws and regulations, including the ADA, as compliance with such laws are the sole responsibility of the FRANCHISEE. Once approved by the COMPANY, the final plans may not then be changed or modified without the prior written permission of the COMPANY.
- 4.7.3 the FRANCHISEE will obtain all permits and certifications required for the lawful construction of the Store and operation of the Business and will
- certify in writing to the COMPANY that all such permits and certifications have been obtained.
- 4.7.4 the FRANCHISEE will employ a qualified licensed general contractor who is reasonably acceptable to the COMPANY to construct the Store and to complete all improvements.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the franchisee is responsible for obtaining all permits and certifications required for the lawful construction of the Store. Prior to commencing any construction on the Store, the franchisee must comply with all federal, state, and local laws, codes, and regulations, including ADA provisions, regarding the construction, design, and operation of the store.
Specifically, the franchisee is responsible for obtaining all zoning classifications and clearances required by state or local laws, ordinances, or regulations. After obtaining these approvals and clearances, the franchisee must submit final construction plans to Gold Star for approval, ensuring compliance with Gold Star's design standards. However, Gold Star's review does not assess compliance with federal, state, or local laws and regulations, as this remains the franchisee's sole responsibility. Once the plans are approved by Gold Star, any changes or modifications require prior written permission from Gold Star.
Furthermore, the franchisee must obtain all permits and certifications required for the lawful construction of the store and operation of the business and must certify in writing to Gold Star that all such permits and certifications have been obtained. The franchisee is also required to employ a qualified licensed general contractor, reasonably acceptable to Gold Star, to construct the store and complete all improvements, maintaining the necessary insurance during the entire construction period. This allocation of responsibility is typical in franchising, where franchisees usually handle local regulatory compliance while the franchisor focuses on brand standards.