If a Gold Star franchisee has more than one Restaurant, what are the manager requirements?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 41–42)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, if a franchisee has more than one Gold Star restaurant, they may appoint an area manager to oversee the store managers. However, the franchisee must also appoint a different person to serve as the manager of each individual store.
Each designated manager must devote their full time and best efforts to the day-to-day supervision and operation of the store. The identity of the manager cannot be changed without prior written notice to Gold Star, and any replacement manager must complete the required training.
If the franchisee is an individual, they must either be the designated store manager or, if they designate another individual, be present and actively participate in the restaurant's operations for at least 10% of the operating hours each week. If the franchisee is a corporation, limited liability company, or partnership, a principal must serve as the store manager, or if another individual is designated, a principal must be present and actively participate for at least 10% of the operating hours, or the manager must own at least a 10% interest in the franchisee.