What happens if a Manager Trainee ceases to be employed by the Gold Star franchisee?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that a Principal Trainee ceases to own equity in FRANCHISEE or a Manager Trainee ceases to be employed by FRANCHISEE, FRANCHISEE shall, at the COMPANY's option, cause another Principal Trainee or Manager Trainee to
attend and successfully complete the COMPANY's initial training program, such that at all times FRANCHISEE shall comply with the Trainee requirements set forth in this Section 2.1. Any such initial training for replacements Trainees shall be at FRANCHISEE's expense pursuant to Section 2.2 below.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if a Manager Trainee stops working for the franchisee, Gold Star has the option to require the franchisee to have another Principal Trainee or Manager Trainee attend and successfully complete the initial training program. This ensures the franchisee always meets the training requirements outlined in Section 2.1 of the agreement.
This requirement is in place so that the Gold Star location continues to be managed by someone who has completed the company's training program. This helps maintain the quality and standards of the Gold Star brand. The franchisee is responsible for covering the expenses associated with the initial training of any replacement trainees, as detailed in Section 2.2.
For a prospective franchisee, this means being prepared to cover additional training costs if a manager leaves. It also highlights the importance of having multiple people trained, especially if the franchisee is not directly involved in the day-to-day management. This policy ensures that all Gold Star locations are operated by individuals who are well-versed in the company's standards and procedures, regardless of employee turnover.