Must the Gold Star franchisee submit final construction plans to the company for approval?
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.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, a franchisee is required to submit final construction plans to Gold Star for approval. Prior to commencing any construction on the store, the franchisee must obtain all necessary zoning classifications and clearances required by state or local laws. After obtaining these approvals, the franchisee will submit final construction plans to Gold Star for approval, based on preliminary plans and specifications.
The review by Gold Star is limited to assessing compliance with the company's design standards for a typical Gold Star Chili restaurant, including trade dress and presentation of the Marks. However, Gold Star's review does not assess compliance with federal, state, or local laws and regulations, including the ADA, as compliance with such laws is the sole responsibility of the franchisee.
Once the final plans are approved by Gold Star, they cannot be changed or modified without the prior written permission of the company. Additionally, Gold Star provides standard plans and specifications for the design and configuration of a prototype restaurant, including exterior and interior design and layout, fixtures, furnishings, equipment, and signs, to the franchisee's architect, who must be reasonably acceptable to Gold Star. The franchisee is responsible for adapting the prototype plans and specifications to the retail location, subject to Gold Star's approval. Gold Star may also require the franchisee to use a civil engineer approved or designated by the company in connection with the restaurant's design.