Is franchisee site selection for a Gold Star restaurant subject to franchisor approval?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
are also responsible for purchasing and maintaining a functioning I-Pad at your Retail Location.
Site Selection.
Each Franchise is granted only for a single Restaurant at a specified Retail Location. You select your site subject to Gold Star's approval. Gold Star can refuse to approve any proposed Retail Location for any reason or no reason solely in its discretion; and rejection need not be justified by any standard. Some factors considered by Gold Star in evaluating a proposed Retail Location include suitability of the neighborhood, proximity to other restaurants, population density, traffic flow, parking, customer draws in the immediate area and visibility of the proposed Retail Location from streets and parking facilities. If Gold Star rejects a proposed Retail Location, you will have to locate a new proposed Retail Location that is not rejected.
Any lease for the Retail Location also must be acceptable to Gold Star and contain such provisions as Gold Star requires pursuant to the Franchise Agreement. We may require that you use leasing counsel approved or designated by us to represent you in the negotiation of the lease for your Franchise. Leasing counsel fees typically range from $2,500 to $3,500.
If you and Gold Star enter into a Franchise Agreement before you complete the site selection process and if your Retail Location is not selected and approved (together with any lease) within 6 months of the execution of the Franchise Agreement, you will be in default of the Franchise Agreement. If you fail to open your franchised Restaurant for business within twelve (12) months of the approval of your Retail Location, you will be in default of the Franchise Agreement. You will have 10 days after receipt of Gold Star's written notice of default to remedy the default. If the default is not remedied timely and satisfactorily, Gold Star may terminate your Franchise Agreement, at its option.
Table of Contents of the Manual.
The table of contents of our Manual is attached hereto as Exhibit C.
Initial Training Programs.
Gold Star provides initial training programs for new Restaurant Franchisees and their initial key manager(s).
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, site selection is subject to Gold Star's approval. The FDD states that each franchise is granted for a single restaurant at a specified retail location, and the franchisee selects their site subject to Gold Star's approval. Gold Star has the discretion to refuse approval for any reason, without needing to justify their decision.
Factors that Gold Star considers when evaluating a proposed retail location include the suitability of the neighborhood, proximity to other restaurants, population density, traffic flow, parking availability, customer draws in the immediate area, and the visibility of the proposed location from streets and parking facilities. If Gold Star rejects a proposed location, the franchisee must find a new location for consideration.
The lease for the retail location must also be acceptable to Gold Star and contain provisions required by Gold Star, according to the Franchise Agreement. Gold Star may require the franchisee to use leasing counsel approved or designated by them for lease negotiations, with typical leasing counsel fees ranging from $2,500 to $3,500. A franchisee will be in default of the Franchise Agreement if a retail location is not selected and approved (together with any lease) within 6 months of the execution of the Franchise Agreement. Failure to open the franchised restaurant within twelve months of the retail location's approval also constitutes a default. Gold Star provides a list of services to franchisees, including reviewing and approving or rejecting the proposed retail location and lease.