Does Gold Star review the proposed lease for the Retail Location?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6. Review and approve or reject your proposed Retail Location and lease, if any. Site review is sometimes performed before the execution of the Franchise Agreement, and is typically a post-signing activity (Sections 4.2 and 4.3 of the Franchise Agreement).
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. Leasing counsel fees typically range from $2,500 to $3,500.
If you and Gold Star enter into a Franchise Agreement before you complete the site selection process and if your Retail Location is not selected and approved (together with any lease) within 6 months of the execution of the Franchise Agreement, you will be in default of the Franchise Agreement. If you fail to open your franchised Restaurant for business within twelve (12) months of the approval of your Retail Location, you will be in default of the Franchise Agreement. You will have 10 days after receipt of Gold Star's written notice of default to remedy the default. If the default is not remedied timely and satisfactorily, Gold Star may terminate your Franchise Agreement, at its option.
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, Gold Star reviews and approves or rejects the proposed retail location and lease. This review may occur before the Franchise Agreement is signed, but it typically happens after signing.
Any lease for the retail location must be acceptable to Gold Star and include provisions that Gold Star requires, according to the Franchise Agreement. Gold Star may also require franchisees to use leasing counsel approved or designated by them to negotiate the lease. Leasing counsel fees typically range from $2,500 to $3,500.
If a retail location and lease are not selected and approved within 6 months of signing the Franchise Agreement, the franchisee will be in default. Similarly, failure to open the franchised restaurant within 12 months of the retail location's approval also constitutes a default, potentially leading to termination of the Franchise Agreement if not remedied within 10 days of written notice from Gold Star.