What is the Gold Star franchisee's obligation regarding the operation of the store?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall designate, and give the COMPANY written notice of the name of the individual that will serve as manager (such manager and any area manager being referred to hereinafter individually as a "Manager" and collectively as the "Managers") of the Store.
The identity of the Manager cannot be changed without prior written notice to the COMPANY of the identity of the replacement Manager, and FRANCHISEE shall be required to promptly comply with the applicable provisions of Section 2 hereof with respect to any training required of such replacement Manager.
The Manager must devote his or her full time and best efforts to the diligent and conscientious day-to-day, on-premises supervision and operation of the Store (if FRANCHISEE has more than one Store, FRANCHISEE may appoint an area Manager to oversee the Store Managers but must also appoint a different person to serve as Manager of each Store).
If FRANCHISEE is an individual, then FRANCHISEE either must be the designated Store Manager, or FRANCHISEE may designate another individual to serve as Store Manager but FRANCHISEE in that case must on a weekly basis be present and actively participate in the day-to-day, on-premises supervision and operation of the Restaurant for at least ten percent (10%) of the Restaurant's operating hours.
If FRANCHISEE is a corporation, limited liability company or partnership, then either a Principal must serve as Store Manager or, if some other individual serves as Store Manager then a Principal must, on a weekly basis, be present and actively participate in the day-to-day, on-premises supervision and operation of the Store for at least ten percent (10%) of the operating hours of the Store or the Manager must be an owner of at least a ten percent (10%) interest in 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 specific operational standards to maintain uniformity and quality across all locations. Franchisees are responsible for following the standards and operating procedures set by Gold Star, which include specifications for ingredients, food preparation, menu item weights, and service quality. These standards may be updated periodically by Gold Star and are considered part of the franchise agreement.
Gold Star franchisees are required to designate a manager for their store and inform the company of their identity. This manager must be fully dedicated to the daily supervision and operation of the store. If a franchisee owns multiple stores, they can appoint an area manager to oversee the store managers, but each store must have its own dedicated manager.
If the franchisee is an individual, they must either act as the store manager or, if they appoint someone else, they must be present and actively involved in the store's operations for at least 10% of its operating hours each week. For corporate, LLC, or partnership franchisees, a principal must serve as the store manager. Alternatively, if another individual is the manager, a principal must be present and actively participate in the store's operations for at least 10% of the operating hours weekly, or the manager must own at least a 10% interest in the franchisee entity.