What is the Gold Star franchisee's obligation regarding compliance with the Americans with Disabilities Act (ADA)?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
e, at no cost to the FRANCHISEE:
- 4.6.1 a schedule of all equipment necessary to operate the Store; and
- 4.6.2 a list of approved sources for architectural services, supplies, equipment, furniture, advertising and marketing materials, computer software and hardware, and other items necessary for the operation of the Store.
- 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
- certify in writing to the COMPANY that all such permits and certifications have been obtained.
- 4.7.4 the FRANCHISEE will employ a qualified licensed general contractor who is reasonably acceptable to the COMPANY to construct the Store and to complete all improvements. The FRANCHISEE will obtain and maintain in force during the entire period of construction the insurance required by Section 18 below.
- 4.8 No Representations or Warranties.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are solely responsible for complying with the Americans with Disabilities Act (ADA) and other applicable laws and regulations. This obligation extends to the construction, design, and operation of the Gold Star restaurant. Franchisees must adhere to all federal, state, and local laws, codes, and regulations, including the ADA, throughout the entire process. Gold Star's review of the franchisee's construction plans is limited to ensuring compliance with the company's design standards and does not assess compliance with laws like the ADA.
Prior to construction, the franchisee must obtain all necessary zoning classifications, clearances, permits, and certifications required for the lawful construction and operation of the restaurant. The franchisee is also responsible for adapting prototype plans and specifications to the specific retail location, subject to Gold Star's approval. Gold Star may require the franchisee to use a civil engineer approved or designated by the company for the restaurant's design.
Furthermore, the franchisee must promptly pay all taxes, assessments, and other financial obligations. They must also obtain all necessary permits, certificates, registrations, or licenses for the construction, refurbishment, and proper operation of the Gold Star restaurant. The franchisee acknowledges that they alone are responsible for compliance with these obligations, and Gold Star has no obligation in this regard. This includes compliance with laws related to employment, health, food dispensing, consumer protection, and trade regulation.
In practice, this means a prospective Gold Star franchisee needs to budget for expert legal and architectural advice to ensure full ADA compliance during site selection, design, and construction. They also need to stay current on all applicable regulations and maintain ongoing compliance throughout the restaurant's operation. Failure to comply with these laws could result in fines, legal action, and potential damage to the Gold Star brand's reputation.