What requirements must a Gold Star franchisee comply with if they relocate?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.5 Relocation. If FRANCHISEE desires to move its Store to another location during the term of this Agreement (including but not limited to a desire to move because FRANCHISEE's lease, or any extension or renewal thereof, terminates during the term of this Agreement through no fault of FRANCHISEE), FRANCHISEE must apply for and be granted approval to relocate (the COMPANY is not obligated to grant such approval) and to purchase a franchise for a different location, must satisfactorily complete the site selection process and must sign and comply with the COMPANY's then current form of franchise agreement, including but not limited to the fee (including initial, weekly, advertising and other fees), appearance, design, lease and other requirements thereof. If FRANCHISEE's lease, or any extension or renewal thereof, terminates during the term of this Agreement due to any fault of FRANCHISEE, this Agreement shall terminate at the option of the COMPANY upon written notice from the COMPANY.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee who wishes to relocate their store during the term of the franchise agreement must apply for and receive approval from Gold Star. Gold Star is not obligated to grant this approval. The franchisee must also purchase a franchise for the new location, satisfactorily complete the site selection process, and sign and comply with Gold Star's current franchise agreement. This includes adhering to the then-current fee structure (initial, weekly, advertising, and other fees), appearance, design, lease, and other requirements.
This means that relocating a Gold Star franchise is not a simple matter of moving to a new location. It involves a formal application process, potential denial, and essentially establishing a new franchise at the new site. The franchisee will likely incur costs associated with site selection, construction or build-out to meet current design standards, and legal fees for reviewing the new franchise agreement.
Furthermore, the franchisee must comply with Gold Star's then-current franchise agreement, which may have different terms and conditions than the original agreement. This could include higher fees, stricter operational requirements, or other changes that could impact the profitability and operation of the franchise. If the franchisee's lease terminates due to any fault of the franchisee, Gold Star has the option to terminate the agreement with written notice.
Prospective franchisees should carefully consider these relocation requirements and the potential costs and obligations involved before entering into a franchise agreement with Gold Star. It is important to understand that relocation is not guaranteed and that significant additional investment may be required.