What happens if the Gold Star manager does not complete the initial training program to Gold Star's satisfaction?

ne of your principals). Gold Star does require that your Restaurant be directly supervised "on premises" by a manager who meets certain requirements.

You must designate and give Gold Star written notice of the name of, an individual who will serve as manager and, if applicable, area manager of the Restaurant (that manager, and any area manager, are referred to in this disclosure document individually as a "Manager" and collectively as the "Managers"). If you are an individual, you either must be the designated Manager or, if you designate some other individual to serve as Manager, you 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 10% of the Restaurant's operating hours. If you are a business entity such as a corporation or limited liability company, then an individual with an ownership interest in you must be the designated Manager; or you can designate some other individual to serve as Manager, but if you do so then an individual owning an equity interest in you must be present and actively participate in the day-to-day, on-premises supervision and operation of the Restaurant for at least 10% of the Restaurant's operating hours. Each Manager must agree in writing to be bound individually by the confidentiality, noncompete and transfer restrictions of Sections 11, 12 and 14 of the Franchise Agreement. Each Manager must complete Gold Star's initial training program to the satisfaction of Gold Star. The Manager cannot be changed without prior written notice to Gold Star of the replacement Manager, and without the replacement Manager completing the initial training program to Gold Star's satisfaction. Each Manager also must satisfactorily complete all additional and refresher training programs Gold Star requires.

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 Restaurant. If you have more than one Restaurant, you must have a different Manager for each Restaurant and that Manager must devote his or her full time and best efforts to the diligent and conscientious day-today, on-premises supervision and operation of that one Restaurant (you may appoint an area Manager to oversee the Restaurant Managers but each Restaurant must also have its own Manager).

Each holder of an interest in the Franchise Agreement or in you must enter into a written agreement personally guaranteeing all of your obligations under the Franchise Agreement and agreeing to be personally bound by the confidentiality, noncompete and transfer restrictions of Sections 11, 12 and 14 of the Franchise Agreement.

Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 41–42)