Do the rights granted to a Gold Star franchisee apply to locations beyond the Retail Location?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.4 Additional Stores.
The rights granted FRANCHISEE under this Agreement relate solely to the Retail Location.
In order to operate a Store in an additional location, FRANCHISEE must apply for and be granted approval (the COMPANY is not obligated to grant such approval) to purchase a separate franchise, satisfactorily complete the site selection process and sign and comply with a separate franchise agreement (which must be the COMPANY's then current form
- of franchise agreement) and pay additional fees equal to the COMPANY's then current fees, including but not limited to initial franchise fees, continuing franchise fees, advertising and other fees.
- 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, the rights granted to a franchisee are specifically tied to the Retail Location. The franchise agreement allows a franchisee to operate a Gold Star restaurant exclusively at the location specified on the cover page of the agreement. The franchisee's rights to use the Gold Star system and marks are limited to this Retail Location and its associated advertising.
To operate additional Gold Star locations, a franchisee must apply for and receive approval for a separate franchise agreement. Gold Star is not obligated to grant such approval. This process includes completing the site selection process and signing Gold Star's current franchise agreement, which involves paying additional fees, including initial franchise fees, continuing franchise fees, advertising, and other fees.
If a franchisee wishes to move their existing Gold Star restaurant to a new location during the term of the agreement, they must also seek approval to relocate and purchase a franchise for the new site. This involves meeting the current requirements for fees, appearance, design, and lease terms. If the lease terminates due to the franchisee's fault, Gold Star has the option to terminate the agreement.