What is the scope of Gold Star's review and approval of the franchisee's final construction plans?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.7 Pre-Construction Requirements. Prior to commencing any construction on the Store, the FRANCHISEE will comply with all of the following requirements:
- 4.7.1 the FRANCHISEE will comply with all federal, state and local laws, codes and regulations, including the applicable provisions of the ADA, regarding the construction, design and operation of the Store.
- 4.7.2 the FRANCHISEE will be responsible for obtaining all zoning classifications and clearances that may be required by state or local laws, ordinances, regulations that may be necessary or advisable owing to any restrictive covenants at the Retail Location. After having obtained such approvals and clearances, the FRANCHISEE will submit to the COMPANY, for the COMPANY's approval, final plans for construction based on the preliminary plans and specifications. The COMPANY's review and approval of plans will be limited to review of such plans to assess compliance with the COMPANY's design standards for a typical Gold Star Chili restaurant, including such items as trade dress and presentation of the Marks. The COMPANY's review is not designed to assess compliance with federal, state or local laws and regulations, including the ADA, as compliance with such laws are the sole responsibility of the FRANCHISEE. Once approved by the COMPANY, the final plans may not then be changed or modified without the prior written permission of the COMPANY.
- 4.7.3 the FRANCHISEE will obtain all permits and certifications required for the lawful construction of the Store and operation of the Business and will
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company's review and approval of a franchisee's final construction plans is limited to ensuring compliance with Gold Star's design standards for a typical Gold Star Chili restaurant. This includes elements such as trade dress and the presentation of the brand's Marks. The franchisee must submit final construction plans to Gold Star for approval after obtaining all necessary zoning classifications and clearances. Once approved, these plans cannot be altered without Gold Star's prior written consent.
Gold Star's review is specifically not intended to assess compliance with federal, state, or local laws and regulations, including the Americans with Disabilities Act (ADA). The responsibility for adhering to all such laws rests solely with the franchisee. This means franchisees must ensure their plans meet all legal requirements independently of Gold Star's design review.
Prior to construction, franchisees must comply with all applicable laws, codes, and regulations, including ADA provisions. They are also responsible for obtaining all necessary zoning classifications, clearances, permits, and certifications required for the lawful construction and operation of the Gold Star restaurant. Additionally, franchisees must engage a qualified, licensed general contractor, reasonably acceptable to Gold Star, to carry out the construction and maintain appropriate insurance during the construction period.
Gold Star also provides standard prototype plans and specifications to the franchisee's architect, at no charge, for the design and configuration of a restaurant. However, these prototype plans do not address specific legal requirements like the ADA or construction drawings needed for permits. The franchisee is responsible for adapting these plans to the specific retail location, subject to Gold Star's approval, and may be required to use a civil engineer approved or designated by Gold Star.