What is the Gold Star franchisee's obligation to comply with the Manual?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
nted form) or at the termination of this Agreement. The version of the Manual available on any extranet, or, if not kept on a COMPANY extranet, the master copy of the Manuals kept by the COMPANY at its principal office, will be controlling, in the event of any dispute relating to the contents of the Manual.
- 3.3 Compliance with Manual. The Manual includes, among other things, standards of operation (including menu content, recipes and presentation), standards of Restaurant management, operation, cleanliness and service, and standards concerning type, style and presentation of all food, beverages, furnishings, supplies, inventory, fixtures, interior and exterior decor and equipment used in connection with the Store. The Manual may be supplemented or changed (by reissuance, substitution, addition, deletion or other modification) by the COMPANY from time to time, by written bulletins, letters, notices, substitute pages, additional or revised manuals and other materials (all of which are included within the term "Manual"), and the FRANCHISEE shall at all times conform to the Manual as then in effect. FRANCHISEE shall be advised in writing of any change and shall have such reasonable time as the COMPANY deems necessary, from the date of such written notice, to implement fully any such change. The Manual, as presently constituted and as may be hereafter amended and supplemented by the COMPANY from time to time, is incorporated by reference herein and thereby made a part of this Agreement. Notwithstanding the foregoing, if the COMPANY makes any amendment or supplement to the Manual requiring any refurbishment of the Retail Location which would reasonably be expected to
- exceed $30,000.00 in cost to FRANCHISEE, FRANCHISEE shall be afforded at least six months after receiving notice of such amendment or supplement to fully and finally complete such refurbishment.
- 3.4 Compliance with Standards. FRANCHISEE shall at all times conduct the Business in strict compliance with this Agreement, and such standards, procedures and policies as the COMPANY may from time to time establish, as though all were specifically set forth in this Agreement and whether set forth in the Manual, bulletins, notices or elsewhere.
4. RETAIL LOCATION; CONSTRUCTION OF RESTAURANT.
- 4.1 Pre-Approval of Retail Location. In the event that the Retail Location has been chosen prior to the execution hereof and is indicated on the cover page of this Agreement, then execution of this Agreement by the COMPANY shall indicate approval of the site of the Retail Location by the COMPANY and the date hereof shall be deemed to be the date upon which such Retail Location has been approved.
- 4.2 Conventional Approval of Retail Location. In the event that the Retail Location has not been approved concurrently with the execution hereof, then FRANCHISEE must promptly identify one or more proposed Retail Locations, and, within six (6) months of the date hereof, obtain the COMPANY's written approval of the site of a Retail Location and any lease therefor. The COMPANY may require FRANCHISEE to use a master broker and/or local broker approved by or designated by the COMPANY in connection with the selection of a Retail Location.
- 4.3 Approval of Lease. If FRANCHISEE intends to occupy the Retail Location under a lease, sublease, or other contract of tenancy (collectively, the "Lease"), any such Lease (and any amendment, renewal or extension thereof) must be approved by the COMPANY prior to its execution. The COMPANY's approval of the Lease may be conditioned upon the inclusion of such provisions as the COMPANY reasonably requires, including without limitation, those provisions set forth on Exhibit B attached hereto.
- 4.4 Use of Leasing Counsel. The COMPANY may, at its discretion, at any time prior to its approval of the Lease, require FRANCHISEE to engage attorneys of the COMPANY's choosing to advise FRANCHISEE and negotiate the terms of the Lease. The expenses of such leasing attorneys shall be the sole responsibility of FRANCHISEE.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees must adhere to the standards and operating procedures outlined in the Manual. The Manual contains standards of operation, including menu content, recipes, presentation, restaurant management, cleanliness, service, and the type, style, and presentation of food, beverages, furnishings, supplies, inventory, fixtures, interior and exterior decor, and equipment. Gold Star may modify the Manual, and franchisees must conform to these changes. Franchisees will receive written notice of any changes and a reasonable time to implement them. The Manual is incorporated by reference into the Franchise Agreement.
Compliance with the Manual is crucial for maintaining uniform operating standards across all Gold Star Chili franchises, increasing demand for products and services, maintaining a reputation for quality, service, cleanliness, and customer satisfaction, and protecting the goodwill of the Gold Star Chili brand. Franchisees must operate their businesses in a way that preserves and builds the goodwill of all restaurants and the company, adhering to all System Standards, which include specifications for ingredients, food preparation, service methods, and the weight, quality, and dimensions of menu items.
Failure to comply with the Manual can result in a violation of the Franchise Agreement. For example, the agreement states that the company's agreement not to operate or license another to operate a Restaurant within the Protected Territory is dependent on the franchisee fully complying with all methods, procedures, standards and specifications required by the company in the Manual or otherwise in writing. The Manual and any written communications from Gold Star are considered part of the Franchise Agreement, making adherence to these standards a contractual obligation for the franchisee.