Does Gold Star review the proposed Retail Location?
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. 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.
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 a franchisee's proposed retail location and lease. This site review can occur before or after the Franchise Agreement is signed. Gold Star can refuse a proposed retail location for any reason, and is not required to justify their decision. Factors Gold Star considers include the suitability of the neighborhood, proximity to other restaurants, population density, traffic flow, parking, customer draws, and visibility of the location.
If a Franchise Agreement is signed before a retail location is secured, the franchisee has six months to find an approved location. Failure to do so puts the franchisee in default of the Franchise Agreement. Similarly, a franchisee has twelve months from the approval of the retail location to open their Gold Star restaurant. Failure to open on time also constitutes a default.
The lease for the retail location must be acceptable to Gold Star and contain provisions they require. Gold Star may also require the franchisee to use leasing counsel approved or designated by them, with leasing counsel fees typically ranging from $2,500 to $3,500. This requirement ensures that the lease terms align with Gold Star's standards and protects their interests.
These stipulations are fairly standard in the franchise industry, as franchisors want to ensure that the location is suitable for the business and that the lease terms are favorable. Prospective franchisees should carefully consider these requirements and be prepared to work closely with Gold Star to find an appropriate location and negotiate a lease that meets their standards.