Does Gold Star recommend that the Franchise business be under the personal direct on-premises supervision of the franchisee?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Gold Star recommends, but does not require, that the Franchise business be under your personal direct on-premises supervision (or, if you are a corporation or partnership, the direct onpremises supervision of one of your principals). Gold Star does require that your Restaurant be directly supervised "on premises" by a manager who meets certain requirements.
You must designate and give Gold Star written notice of the name of, an individual who will serve as manager and, if applicable, area manager of the Restaurant (that manager, and any area manager, are referred to in this disclosure document individually as a "Manager" and collectively as the "Managers"). If you are an individual, you either must be the designated Manager or, if you designate some other individual to serve as Manager, you must, on a weekly basis, be present and actively participate in the day-to-day, on-premises supervision and operation of the Restaurant for at least 10% of the Restaurant's operating hours. If you are a business entity such as a corporation or limited liability company, then an individual with an ownership interest in you must be the designated Manager; or you can designate some other individual to serve as Manager, but if you do so then an individual owning an equity interest in you must be present and actively participate in the day-to-day, on-premises supervision and operation of the Restaurant for at least 10% of the Restaurant's operating hours. Each Manager must agree in writing to be bound individually by the confidentiality, noncompete and transfer restrictions of Sections 11, 12 and 14 of the Franchise Agreement. Each Manager must complete Gold Star's initial training program to the satisfaction of Gold Star. The Manager cannot be changed without prior written notice to Gold Star of the replacement Manager, and without the replacement Manager completing the initial training program to Gold Star's satisfaction. Each Manager also must satisfactorily complete all additional and refresher training programs Gold Star requires.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 41–42)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, Gold Star recommends, but does not require, that the franchise business be under the franchisee's personal, direct, on-premises supervision. If the franchisee is a corporation or partnership, Gold Star recommends the direct on-premises supervision of one of its principals. However, Gold Star mandates that the restaurant be directly supervised on-premises by a manager who meets specific requirements.
Gold Star requires the franchisee to designate a manager and provide written notice of their name. If the franchisee is an individual, they must either be the designated manager or, if they designate someone else, be present and actively participate in the restaurant's day-to-day operations for at least 10% of its operating hours each week. If the franchisee is a business entity, an individual with an ownership interest must be the designated manager. Alternatively, they can designate another individual, but in that case, an individual owning an equity interest must be present and actively participate in the restaurant's supervision and operation for at least 10% of the operating hours weekly.
Each manager must agree in writing to be bound by the confidentiality, noncompete, and transfer restrictions outlined in the Franchise Agreement. Furthermore, each manager must complete Gold Star's initial training program to the franchisor's satisfaction. The manager cannot be replaced without prior written notice to Gold Star and the completion of the initial training program by the replacement manager. All managers must also satisfactorily complete any additional and refresher training programs required by Gold Star.