What information must a Gold Star franchisee provide to Gold Star regarding its Principals?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
EE 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.
- 5.3 Signage.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, or partnership, and not all principals are serving as the Store Manager, then at least one Principal must be present and actively participate in the day-to-day supervision and operation of the store for at least ten percent of the store's operating hours on a weekly basis. Alternatively, the Manager must own at least a ten percent interest in the franchisee.
This requirement ensures that even when a franchisee is not an individual directly managing the store, a principal with a significant stake in the business is actively involved in its operations. This hands-on approach is intended to maintain the quality and standards of the Gold Star brand.
Furthermore, Gold Star requires written notice of the individual designated as the manager of the store. If the identity of the Manager changes, Gold Star must receive prior written notice of the replacement Manager's identity. The franchisee must also ensure that the replacement Manager completes any required training, as outlined in Section 2 of the franchise agreement. This allows Gold Star to maintain standards and protect its brand reputation.