Is Gold Star obligated to approve a franchisee's application for an additional location?

According to Gold Star's 2025 Franchise Disclosure Document, franchisees must apply for approval to operate a store in an additional location, but Gold Star is not obligated to grant such approval. To open an additional Gold Star location, a franchisee must complete the site selection process, sign a separate franchise agreement (using Gold Star's current form), and pay the then-current fees, including initial franchise fees, continuing franchise fees, advertising fees, and other fees. The rights granted to the franchisee under the existing agreement apply only to the original retail location.

This means that even if a franchisee is in good standing and has a successful existing location, Gold Star retains the discretion to deny an application for an additional franchise. This is a standard practice in franchising, as franchisors typically want to ensure that new locations are a good fit for the brand and will not cannibalize sales from existing locations.

For a prospective Gold Star franchisee, this highlights the importance of building a strong relationship with the franchisor and demonstrating the ability to successfully manage and grow the business. While approval for additional locations is not guaranteed, a proven track record can increase the likelihood of expansion opportunities. Franchisees should inquire about the specific criteria Gold Star uses to evaluate applications for additional locations to better understand the process and improve their chances of approval.