What is Gold Star's practice regarding fees and standards for its company-owned outlets?
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, as of December 31, 2024, Gold Star had 9 company-owned restaurants in operation. Gold Star defines company-owned stores as those controlled directly through equity ownership. While Gold Star does not enter into franchise agreements with its company-owned outlets, it is currently their practice to have these outlets pay the same fees and adhere to the same standards and obligations as required of its franchisees.
This practice suggests that Gold Star aims to maintain consistency across all its restaurants, whether franchised or company-owned. By ensuring that company-owned outlets comply with the same financial and operational requirements as franchised locations, Gold Star can better evaluate the performance and profitability of its business model. This also provides a benchmark for franchisees, demonstrating the standards they are expected to meet.
For a prospective franchisee, this information indicates that the fees and standards outlined in the Franchise Agreement are not merely theoretical but are actively enforced across all Gold Star locations. This can be seen as a positive sign, as it suggests a commitment to uniformity and quality control within the Gold Star system. However, it also means that franchisees should be prepared to meet these standards from day one, as there is little room for deviation.
It is important for potential franchisees to carefully review the Franchise Agreement and understand all the fees, standards, and obligations involved. They should also inquire about any potential differences in how these requirements are applied in practice, as the FDD only states the current practice and policies can change.