What level of effort is required from the manager of a Gold Star Chili store?
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 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the manager of a Gold Star Chili store must devote their full time and best efforts to the day-to-day, on-premises supervision and operation of the store. If a franchisee owns multiple Gold Star locations, they can appoint an area manager to oversee the store managers, but each store must still have a dedicated manager.
If the franchisee is an individual, they must either be the designated store manager or, if they designate another individual as the store manager, they must be present and actively participate in the store's supervision and operation for at least 10% of the restaurant's operating hours each week.
Similarly, if the franchisee is a corporation, limited liability company, or partnership, a principal must serve as the store manager. If someone else is designated as the store manager, then a principal must be present and actively participate in the store's operations for at least 10% of the operating hours each week. Alternatively, the manager can be an owner with at least a 10% interest in the franchisee entity. This ensures that, regardless of the ownership structure, someone with a vested interest is actively involved in the store's management and operations.