If the Retail Location for a Gold Star franchise is not approved concurrently with the execution of the Franchise Agreement, how long does the FRANCHISEE have to obtain the COMPANY's written approval of the site?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 Conventional Approval of Retail Location. In the event that the Retail Location has not been approved concurrently with the execution hereof, then FRANCHISEE must promptly identify one or more proposed Retail Locations, and, within six (6) months of the date hereof, obtain the COMPANY's written approval of the site of a Retail Location and any lease therefor. The COMPANY may require FRANCHISEE to use a master broker and/or local broker approved by or designated by the COMPANY in connection with the selection of a Retail Location.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, if the retail location is not approved when the Franchise Agreement is executed, the franchisee has six months to obtain Gold Star's written approval for the site and any associated lease.
This means that a prospective Gold Star franchisee needs to identify and secure a location within this timeframe. The franchisee may be required to use a master broker or local broker approved or designated by Gold Star during the site selection process. This requirement ensures that the location meets Gold Star's standards and criteria.
Furthermore, if the franchisee intends to lease the retail location, the lease agreement (and any amendments, renewals, or extensions) must also be approved by Gold Star before execution. Gold Star's approval of the lease may depend on specific provisions outlined in Exhibit B of the Franchise Agreement. Gold Star may also require the franchisee to engage attorneys of Gold Star's choosing to advise and negotiate the lease terms, with the franchisee bearing the expenses for these attorneys. Failing to secure site approval within the specified timeframe could impact the franchisee's ability to move forward with opening their Gold Star restaurant.