Is the Gold Star franchisee responsible for obtaining all zoning classifications and clearances required by state or local laws?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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
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 necessary zoning classifications and clearances. Specifically, prior to starting any construction, the franchisee must secure all zoning classifications and clearances that may be required by state or local laws, ordinances, or regulations, especially those related to restrictive covenants at the retail location.
After obtaining these approvals and clearances, the franchisee must submit final construction plans to Gold Star for approval. However, Gold Star's review is limited to ensuring compliance with the company's design standards, such as trade dress and presentation of trademarks, and does not assess compliance with federal, state, or local laws and regulations, including the ADA. Compliance with these laws remains the sole responsibility of the franchisee.
Furthermore, the Gold Star franchisee is responsible for obtaining all permits and certifications required for the lawful construction of the store and the operation of the business. The franchisee must also comply with all federal, state, and local laws and regulations, including the ADA, Title VII of the Civil Rights Act, and other employment laws. This includes securing all necessary permits, certificates, registrations, or licenses for the construction, refurbishing, and operation of the store. Gold Star explicitly states that the franchisee alone is responsible for compliance with these obligations.