Does Gold Star provide an estimate for refurbishment costs?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
At the request of the COMPANY, FRANCHISEE will refurbish the Store at its own expense to conform to the trade dress, color schemes and presentation of the Marks in a manner consistent with the image then in effect for new Gold Star Chili restaurants under the System.
Such refurbishment may include structural changes, installation of new equipment and signs, remodeling, redecoration, and modifications to existing improvements.
FRANCHISEE will complete the refurbishing within the time period specified by the COMPANY pursuant to Section 3.3 hereof.
FRANCHISEE acknowledges that the COMPANY cannot estimate the costs of refurbishment but any request by the COMPANY will be in its reasonable discretion.
Notwithstanding the foregoing, the COMPANY shall not require FRANCHISEE to fully refurbish the Store during the following periods: (a) if the Store will be newly-constructed in connection with this Agreement, (i) during the period commencing with the date of this Agreement and ending on the five-year anniversary of the Store opening for business to the general public and (ii) the period commencing on the date which is one year prior to the expiration of the initial term of this Agreement, and ending on the last day of the initial term of this Agreement; or (b) if the Store will not be newly-constructed in connection with this Agreement, (i) during the period commencing with the date of this Agreement and ending on the one-year anniversary of the Store opening for business to the general public and (ii) the period commencing on the date which is one year prior to the expiration of the initial term of this Agreement.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star does not provide an estimate for refurbishment costs. The FDD states that franchisees are responsible for refurbishing the store at their own expense when requested by Gold Star to conform to the current image of new Gold Star Chili restaurants. This refurbishment may include structural changes, new equipment and signs, remodeling, redecoration, and modifications. Gold Star will specify the time period for completing the refurbishment.
However, Gold Star acknowledges that they cannot estimate the costs of refurbishment, but any request by Gold Star will be in its reasonable discretion. There are also periods when Gold Star will not require a full refurbishment of the store. For newly-constructed stores, this includes the first five years after opening and the year before the initial agreement expires. For stores that are not newly constructed, this includes the first year after opening and the year before the initial agreement expires.
This lack of a concrete estimate places the onus on the franchisee to budget and prepare for potentially significant and unpredictable refurbishment expenses. Franchisees should discuss with Gold Star what the typical scope and cost of past refurbishments have been to get a sense of the potential financial impact. It is important to note that the actual costs can vary widely depending on the specific requirements and the condition of the existing location.