What locations are considered 'Special Purpose Outlets' for a Gold Star restaurant?

According to Gold Star's 2025 Franchise Disclosure Document, a "Special Purpose Outlet" is defined as a Gold Star Chili restaurant located inside specific venues. These venues include shopping malls or centers, zoos, airports, race tracks, amusement parks, fairgrounds, sports stadiums, hospitals, factories, bars, schools, gas stations, and special events.

For a prospective franchisee, understanding the definition of a Special Purpose Outlet is crucial because it affects the territory rights and potential competition. Gold Star retains the right to establish these Special Purpose Outlets within a franchisee's protected territory, which could impact the franchisee's sales and market share. However, if the Retail Location is a Special Purpose Outlet, Gold Star will not operate or license another to operate an additional Restaurant in the same building as the Special Purpose Outlet.

Furthermore, the FDD notes that the typical Special Purpose Outlet utilizes approximately 600 to 800 square feet, which is significantly smaller than the 2,300 square feet typical of other Gold Star restaurants. This difference in size may influence the initial investment and operating costs for franchisees interested in pursuing these types of locations. Additionally, the continuing franchise fee for a Special Purpose Outlet is often 4% of gross sales.