Must the manager of a Gold Star Chili store devote full time to the operation?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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 generally devote full time to the operation. The FDD states that 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.
However, there are exceptions to this requirement depending on the franchisee's business structure. If the franchisee owns multiple Gold Star Chili stores, they may appoint an area manager to oversee the store managers, but must still appoint a different person to serve as the manager of each individual store. If the franchisee is an individual, they can designate another individual as the store manager, provided the franchisee is present and actively participating in the store's operation for at least 10% of the restaurant's operating hours on a weekly basis.
Similarly, if the franchisee is a corporation, LLC, or partnership, a principal must serve as the store manager. Alternatively, if another individual is designated as the store manager, a principal must be present and actively participate in the store's operations for at least 10% of the operating hours weekly, or the manager must own at least a 10% interest in the franchisee entity. These stipulations ensure that even if the designated manager isn't a full-time owner, there is still significant owner involvement in the store's operations.