What are the requirements for a replacement manager of a Gold Star Chili store?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The identity of the Manager cannot be changed without prior written notice to the COMPANY of the identity of the replacement Manager, and FRANCHISEE shall be required to promptly comply with the applicable provisions of Section 2 hereof with respect to any training required of such replacement Manager.
The Manager must devote his or her full time and best efforts to the diligent and conscientious day-to-day, on-premises supervision and operation of the Store (if FRANCHISEE has more than one Store, FRANCHISEE may appoint an area Manager to oversee the Store Managers but must also appoint a different person to serve as Manager of each Store).
If FRANCHISEE is an individual, then FRANCHISEE either must be the designated Store Manager, or FRANCHISEE may designate another individual to serve as Store Manager but FRANCHISEE in that case 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 ten percent (10%) of the Restaurant's operating hours.
If FRANCHISEE is a corporation, limited liability company or partnership, then either a Principal must serve as Store Manager or, if some other individual serves as Store Manager then a Principal must, on a weekly basis, be present and actively participate in the day-to-day, on-premises supervision and operation of the Store for at least ten percent (10%) of the operating hours of the Store or the Manager must be an owner of at least a ten percent (10%) interest in FRANCHISEE.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if a franchisee needs to replace the manager of their Gold Star Chili store, they must provide prior written notice to Gold Star with the identity of the replacement manager. The franchisee is also required to ensure that the replacement manager completes any necessary training as outlined in Section 2 of the franchise agreement.
The FDD also specifies that the manager must devote their full time and best efforts to the daily supervision and operation of the store. If a franchisee owns multiple Gold Star Chili locations, they can appoint an area manager to oversee the store managers, but each store must still have a designated manager.
For individual franchisees, the franchisee must either be the designated store manager or, if they designate another individual, they must be present and actively participate in the store's supervision and operation for at least ten percent (10%) of the restaurant's operating hours each week. If the franchisee is a corporation, LLC, or partnership, a principal must serve as the store manager. If someone else is the store manager, then a principal must be present and actively participate in the store's operations for at least ten percent (10%) of the operating hours weekly, or the manager must own at least a ten percent (10%) interest in the franchisee.
These requirements ensure that all Gold Star Chili locations are consistently and effectively managed, maintaining the brand's standards and operational quality. Franchisees need to carefully plan for manager replacements to avoid any disruption in operations and to comply with Gold Star's training and oversight requirements.