Does Gold Star require a franchisee to personally supervise the franchise business?
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 Gold Star's 2025 Franchise Disclosure Document, while Gold Star recommends on-premises supervision, it is not strictly required. However, Gold Star mandates that each restaurant be directly supervised on-premises by a manager who meets specific requirements.
If the franchisee is an individual, they must either be the designated manager or, if another individual is designated as manager, the franchisee must be present and actively participate in the day-to-day operations for at least 10% of the restaurant's operating hours on a weekly basis. For business entities like corporations or LLCs, an individual with an ownership interest must be the designated manager. Alternatively, if someone else is the manager, an individual owning equity in the business must be present and actively participate in the restaurant's supervision and operation for at least 10% of its operating hours each week.
Each manager must agree to be bound by the confidentiality, noncompete, and transfer restrictions outlined in the Franchise Agreement. Furthermore, each manager is required to complete Gold Star's initial training program to the franchisor's satisfaction. Any changes to the manager require prior written notice to Gold Star, and the replacement manager must also complete the initial training program. Additionally, all managers must satisfactorily complete any additional or refresher training programs that Gold Star requires.