Is Gold Star obligated to grant approval for a franchisee to purchase a separate franchise for an additional location?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The rights granted FRANCHISEE under this Agreement relate solely to the Retail Location.
In order to operate a Store in an additional location, FRANCHISEE must apply for and be granted approval (the COMPANY is not obligated to grant such approval) to purchase a separate franchise, satisfactorily complete the site selection process and sign and comply with a separate franchise agreement (which must be the COMPANY's then current form
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the rights a franchisee is granted under their agreement relate solely to the specific retail location outlined in that agreement. If a franchisee wishes to operate a Gold Star store at an additional location, they must apply for and receive approval to purchase a separate franchise.
Gold Star is not obligated to grant approval for the franchisee to purchase another franchise. The franchisee must also satisfactorily complete the site selection process and sign a separate franchise agreement that reflects Gold Star's then-current form. This means that even if a franchisee already operates a successful Gold Star location, there is no guarantee they will be allowed to expand with additional locations.
This policy is fairly standard in franchising, as franchisors typically want to maintain control over brand growth and ensure that new locations meet their standards and strategic goals. A prospective Gold Star franchisee should discuss with the franchisor the criteria and process for obtaining approval for additional locations to understand what factors will be considered in the decision.