Does Gold Star provide any warranties that the operation of the business at a specific site will be successful?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.8 No Representations or Warranties. Neither the COMPANY's acceptance of any proposed site or design, assistance in evaluating or determining a site, site lease or design or any information communicated to FRANCHISEE with respect to site selection or design criteria or any proposed site, lease or design shall be interpreted as a representation, warranty or guarantee, express or implied, that a suitable site or lease can be obtained for FRANCHISEE, or that any site found, lease obtained or design used is suitable, or that operation of the Business at such site or under such design or lease shall be successful.
THE FRANCHISE AND THAT IT HAS BEEN GIVEN THE OPPORTUNITY TO CLARIFY ANY PROVISION AND INFORMATION THAT IT DID NOT UNDERSTAND AND TO CONSULT WITH ITS OWN ATTORNEY OR OTHER PROFESSIONAL ADVISOR AND HAS OBTAINED INDEPENDENT LEGAL AND FINANCIAL ADVICE PRIOR TO EXECUTING THIS AGREEMENT. FRANCHISEE ACKNOWLEDGES NEITHER THE COMPANY, NOR ANY OF ITS OFFICERS, EMPLOYEES, REPRESENTATIVES, BROKERS OR AGENTS, HAVE MADE (A) ANY REPRESENTATIONS, ACKNOWLEDGMENT, PROMISE, GUARANTEE, INDUCEMENT, UNDERTAKING OR WARRANTY (WRITTEN OR ORAL, EXPRESS OR IMPLIED) OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS AGREEMENT, OR (B) ANY REPRESENTATIONS (WRITTEN OR ORAL, EXPRESS OR IMPLIED) AS TO THE ACTUAL, AVERAGE, POTENTIAL, PROJECTED OR FORECASTED SUCCESS, SALES, PROFITS, COSTS, INCOME OR EARNINGS OF A GOLD STAR CHILI RESTAURANT OR THE FRANCHISE BUSINESS TO BE CONDUCTED BY FRANCHISEE. FRANCHISEE FURTHER ACKNOWLEDGES THAT FRANCHISEE RECOGNIZES THAT THE NATURE OF THE BUSINESS CONDUCTED BY GOLD STAR CHILI RESTAURANTS MAY EVOLVE AND CHANGE OVER TIME; THAT FRANCHISEE'S INVESTMENT INVOLVES BUSINESS RISKS NOT SUSCEPTIBLE TO THE COMPANY'S OR FRANCHISEE'S CONTROL; AND THAT FRANCHISEE'S SUCCESS WILL BE LARGELY DEPENDENT ON FRANCHISEE'S OWN BUSINESS ABILITIES AND EFFORTS.
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 any representations, warranties, or guarantees, either express or implied, that the operation of the business at a specific site will be successful. Gold Star's acceptance or assistance with site selection, evaluation, or design should not be interpreted as a guarantee of success at that location.
Gold Star emphasizes that franchisees are solely responsible for complying with all applicable federal, state, and local laws, codes, and regulations, including ADA requirements, regarding the construction, design, and operation of the store. Franchisees must obtain all necessary zoning classifications, clearances, permits, and certifications for lawful construction and operation.
Prospective franchisees should recognize that their success will depend largely on their own business abilities and efforts. Gold Star also states that the nature of the business conducted by Gold Star restaurants may evolve and change over time and that the franchisee's investment involves business risks not susceptible to Gold Star's or the franchisee's control.