How many Gold Star outlets were reacquired from franchisees in Kentucky during 2020?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| STATE | YEAR | OUTLETS AT THE START OF YEAR | OUTLETS OPENED | OUTLETS REAQUIRED FROM FRANCHISEE | OUTLETS CLOSED | OUTLETS SOLD TO FRANCHISEE | OUTLETS AT END OF YEAR |
|---|---|---|---|---|---|---|---|
| 2020 | 2 | 0 | 1 | 0 | 0 | 3 |
Source: Item 20 — Outlets and Franchisee Information (FDD pages 48–52)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, one Gold Star outlet in Kentucky was reacquired from a franchisee during 2020. At the start of 2020, there were two Gold Star outlets. Although no new outlets opened, one was reacquired, resulting in three outlets by the end of the year.
This information is crucial for prospective franchisees as it provides insight into the stability and changes within the Gold Star franchise system. Reacquisitions can occur for various reasons, such as a franchisee's failure to meet brand standards or financial difficulties. Understanding the frequency and reasons behind these reacquisitions can help a potential franchisee assess the risks and challenges associated with operating a Gold Star franchise.
Reviewing the history of outlet reacquisitions, closures, and transfers gives potential franchisees a clearer picture of the franchise's health and the support provided by Gold Star to its franchisees. It is also important to note that the FDD includes additional tables with information regarding transfers of outlets and the status of company-owned outlets, which can provide further context to these figures.