Do officers, directors, or shareholders of Gold Star own a substantial number of franchises?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
As of December 31, 2024, there were 48 franchised Restaurants and 9 company-owned Restaurants in operation in the United States. Officers, directors or shareholders of Gold Star and/or their relatives wholly or partly own a substantial number of Franchises. Gold Star defines "company owned" stores as those stores which are controlled by Gold Star directly through equity ownership. Gold Star does not enter into franchise agreements with any of its company owned outlets, but it is currently the practice of Gold Star to cause its company owned outlets to pay the same fees and comply with the same standards and obligations as it requires of its franchisees.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 7–10)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, officers, directors, or shareholders of Gold Star and/or their relatives wholly or partly own a substantial number of Gold Star franchises. As of December 31, 2024, there were 48 franchised Restaurants and 9 company-owned Restaurants in operation in the United States.
This indicates that the leadership of Gold Star has a vested interest in the success of the franchise system, as they themselves or their relatives are franchisees. This can be seen as a positive sign for potential franchisees, as it suggests that the franchisor's interests are aligned with those of its franchisees. They experience the system firsthand and are more likely to understand the challenges and opportunities that franchisees face.
However, it is important for prospective franchisees to further investigate the specific details of these ownership arrangements. Understanding the extent of ownership, the roles these individuals play within the franchise system, and any potential conflicts of interest is crucial. This information can help a franchisee assess whether this level of involvement is beneficial or could potentially create imbalances within the franchise network.