What is the Gold Star franchisee's obligation regarding the development of the store?
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. Neither the COMPANY's acceptance of any proposed site or design, assistance in evaluating or determining a site, site lease or design or any information communicated to FRANCHISEE with respect to site selection or design criteria or any proposed site, lease or design shall be interpreted as a representation, warranty or guarantee, express or implied, that a suitable site or lease can be obtained for FRANCHISEE, or that any site found, lease obtained or design used is suitable, or that operation of the Business at such site or under such design or lease shall be successful.
- 4.9 Construction Schedule. Notwithstanding the foregoing, the FRANCHISEE must complete construction of the Store and cause it to be open for business within twelve (12) months of the approval of the Retail Location.
5. STANDARDS OF OPERATION.
5.1 System Standards. FRANCHISEE acknowledges and agrees that every detail of the System is important, not only to FRANCHISEE but also to the COMPANY and other Gold Star Chili franchisees, in order to develop and maintain uniform operating standards, increase the demand for the products and services offered by all franchisees, establish and maintain a reputation for the highest degree of quality, service, cleanliness and customer satisfaction, and to protect the goodwill of all Gold Star Chili franchises. FRANCHISEE further acknowledges and agrees that a fundamental requirement of the System, this Agreement, and other Gold Star Chili franchises is adherence by all franchisees to the uniform specifications, standards, operating procedures and rules prescribed by the COMPANY for the development and operation of the Store, including, without limitation, standards and specifications regarding ingredients, methods of food preparation and service, and weight, quality and dimensions of menu items and other products served in the Store (collectively referred to as "System Standards"). Accordingly, FRANCHISEE will conduct and operate the Business at all times in a manner that will preserve and build the goodwill of all Restaurants and of the COMPANY, will comply with each and every System Standard, as periodically modified and supplemented by the COMPANY in its sole and absolute discretion, and will not deviate from the System Standards during the term of this Agreement. System Standards prescribed from time to time in the Manual or otherwise communicated to FRANCHISEE in writing will constitute provisions of this Agreement as if fully set forth in this Agreement.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees have several obligations regarding the development of their store. Prior to construction, the franchisee must comply with all federal, state, and local laws, codes, and regulations, including ADA provisions. They are responsible for obtaining all necessary zoning classifications and clearances. Final construction plans must be submitted to Gold Star for approval to ensure compliance with the company's design standards, trade dress, and presentation of marks. However, Gold Star's review does not assess compliance with laws and regulations, as this remains the franchisee's sole responsibility. The franchisee must also obtain all permits and certifications required for lawful construction and operation.
Gold Star franchisees must adhere to the uniform specifications, standards, operating procedures, and rules prescribed by Gold Star for the development and operation of the store. This includes standards and specifications for ingredients, food preparation, service methods, and the weight, quality, and dimensions of menu items. Franchisees are expected to operate the business in a manner that preserves and builds the goodwill of all Gold Star restaurants and the company, complying with all System Standards as modified by Gold Star.
Furthermore, franchisees are responsible for the upkeep of the store, including repairs and painting of the interior and exterior at their own expense, at reasonable times or upon Gold Star's request. The interior and exterior of the store, signs, furniture, fixtures, and equipment, as well as the surrounding area, must be maintained in a clean and attractive condition that is satisfactory to Gold Star and complies with their design and decor standards. At Gold Star's request, franchisees must also refurbish the store at their own expense to conform to the current trade dress, color schemes, and presentation of the marks consistent with the image of new Gold Star restaurants. This refurbishment may include structural changes, new equipment and signs, remodeling, redecoration, and modifications to existing improvements, to be completed within a timeframe specified by Gold Star.