What is the required action of a Gold Star franchisee if a proposed retail location is rejected?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
are also responsible for purchasing and maintaining a functioning I-Pad at your Retail Location.
Site Selection.
Each Franchise is granted only for a single Restaurant at a specified Retail Location. You select your site subject to Gold Star's approval. Gold Star can refuse to approve any proposed Retail Location for any reason or no reason solely in its discretion; and rejection need not be justified by any standard. Some factors considered by Gold Star in evaluating a proposed Retail Location include suitability of the neighborhood, proximity to other restaurants, population density, traffic flow, parking, customer draws in the immediate area and visibility of the proposed Retail Location from streets and parking facilities. If Gold Star rejects a proposed Retail Location, you will have to locate a new proposed Retail Location that is not rejected.
Any lease for the Retail Location also must be acceptable to Gold Star and contain such provisions as Gold Star requires pursuant to the Franchise Agreement. We may require that you use leasing counsel approved or designated by us to represent you in the negotiation of the lease for your Franchise.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if Gold Star rejects a proposed retail location, the franchisee must locate a new proposed retail location that is not rejected. Gold Star has the sole discretion to refuse to approve any proposed retail location for any reason.
Factors that Gold Star considers when evaluating a proposed retail location include the suitability of the neighborhood, proximity to other restaurants, population density, traffic flow, parking, customer draws in the immediate area, and visibility of the proposed retail location from streets and parking facilities.
Furthermore, any lease for the retail location must be acceptable to Gold Star and contain provisions that Gold Star requires, and Gold Star may require the franchisee to use leasing counsel approved or designated by them to represent the franchisee in the negotiation of the lease. Leasing counsel fees typically range from $2,500 to $3,500.