Does a Gold Star franchisee have the right to relocate their franchise without Gold Star's consent?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
You do not receive the right to acquire additional Franchises within your Protected Territory, or contiguous territories or anywhere else. You do not receive the right to relocate your Franchise and must obtain Gold Star's prior written consent in order to change your Retail Location.
Source: Item 12 — Territory (FDD pages 36–37)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee does not have the right to relocate their franchise without prior written consent from Gold Star. The FDD states clearly that a franchisee "must obtain Gold Star's prior written consent in order to change your Retail Location."
This requirement means that if a Gold Star franchisee wishes to move their restaurant to a new location, they must first seek and receive approval from the franchisor. This provision allows Gold Star to maintain control over the placement of its franchises, ensuring that new locations meet the company's standards for market viability and brand consistency. It also protects existing franchisees by preventing the relocation of another franchise in a way that could negatively impact their business.
For a prospective franchisee, this condition highlights the importance of carefully selecting the initial retail location. It also underscores the need for open communication with Gold Star regarding any potential future relocation. While relocation might be possible, it is not guaranteed and depends on Gold Star's assessment of the proposed new location and its impact on the overall franchise system. This is a fairly standard clause in most franchise agreements, as franchisors typically want to control brand consistency and market saturation.