Must the lease for the retail location be acceptable to Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
tail Location, you will have to locate a new proposed Retail Location that is not rejected.
Any lease for the Retail Location also must be acceptable to Gold Star and contain such provisions as Gold Star requires pursuant to the Franchise Agreement. We may require that you use leasing counsel approved or designated by us to represent you in the negotiation of the lease for your Franchise. Leasing counsel fees typically range from $2,500 to $3,500.
If you and Gold Star enter into a Franchise Agreement before you complete the site selection process and if your Retail Location is not selected and approved (together with any lease) within 6 months of the execution of the Franchise Agreement, you will be in default of the Franchise Agreement. If you fail to open your franchised Restaurant for business within twelve (12) months of the approval of your Retail Location, you will be in default of the Franchise Agreement. You will have 10 days after receipt of Gold Star's written notice of default to remedy the default. I
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, any lease for the retail location must be acceptable to Gold Star. The lease must contain provisions that Gold Star requires, as stated in the Franchise Agreement. Gold Star may also require franchisees to use leasing counsel approved or designated by them to represent the franchisee in the negotiation of the lease. Leasing counsel fees typically range from $2,500 to $3,500.
If a franchisee and Gold Star enter into a Franchise Agreement before the site selection process is complete, the retail location (including the lease) must be selected and approved within 6 months of the Franchise Agreement's execution. Failure to do so will result in default of the Franchise Agreement. Furthermore, the franchised restaurant must open for business within twelve months of the retail location's approval, or the franchisee will be in default.
If the franchisee fails to remedy the default within 10 days of receiving written notice from Gold Star, Gold Star may terminate the Franchise Agreement at its option. This highlights the importance of securing an acceptable lease and approved location promptly after signing the Franchise Agreement to avoid potential default and termination.