factual

What is required to change the Gold Star Manager?

Gold_Star Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

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, if a franchisee wants to change the designated manager of their restaurant, they must provide prior written notice to Gold Star. This notice must include the identity of the replacement manager.

Furthermore, the replacement manager is required to complete Gold Star's initial training program to the satisfaction of Gold Star. This ensures that the new manager is adequately prepared to uphold Gold Star's standards and operational procedures. The FDD states that the franchisee is required to promptly comply with the applicable provisions of Section 2 regarding any training required of such replacement Manager.

These requirements are in place to maintain consistency and quality across all Gold Star locations. By mandating prior notice and training for replacement managers, Gold Star aims to protect its brand reputation and ensure that each restaurant is managed effectively. This also helps to ensure that the manager agrees in writing to be bound individually by the confidentiality, noncompete and transfer restrictions of Sections 11, 12 and 14 of the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.