factual

What does signing the Gold Star franchise agreement authorize the company to do?

Gold_Star Franchise · 2025 FDD

Answer from 2025 FDD Document

ign used is suitable, or that operation of the Business at such site or under such design or lease shall be successful.

  • 4.9 Construction Schedule. Notwithstanding the foregoing, the FRANCHISEE must complete construction of the Store and cause it to be open for business within twelve (12) months of the approval of the Retail Location.

5. STANDARDS OF OPERATION.

5.1 System Standards. FRANCHISEE acknowledges and agrees that every detail of the System is important, not only to FRANCHISEE but also to the COMPANY and other Gold Star Chili franchisees, in order to develop and maintain uniform operating standards, increase the demand for the products and services offered by all franchisees, establish and maintain a reputation for the highest degree of quality, service, cleanliness and customer satisfaction, and to protect the goodwill of all Gold Star Chili franchises. FRANCHISEE further acknowledges and agrees that a fundamental requirement of the System, this Agreement, and other Gold Star Chili franchises is adherence by all franchisees to the uniform specifications, standards, operating procedures and rules prescribed by the COMPANY for the development and operation of the Store, including, without limitation, standards and specifications regarding ingredients, methods of food preparation and service, and weight, quality and dimensions of menu items and other products served in the Store (collectively referred to as "System Standards"). Accordingly, FRANCHISEE will conduct and operate the Business at all times in a manner that will preserve and build the goodwill of all Restaurants and of the COMPANY, will comply with each and every System Standard, as periodically modified and supplemented by the COMPANY in its sole and absolute discretion, and will not deviate from the System Standards during the term of this Agreement. System Standards prescribed from time to time in the Manual or otherwise communicated to FRANCHISEE in writing will constitute provisions of this Agreement as if fully set forth in this Agreement. All references to this Agreement include all System Standards as periodically modified.

  • 5.2 Managers. FRANCHISEE shall designate, and give the COMPANY written notice of the name of the individual that will serve as manager (such manager and any area manager being referred to hereinafter individually as a "Manager" and collectively as the "Managers") of the Store. 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.
  • 5.3 Signage. FRANCHISEE shall obtain, display and maintain, at FRANCHISEE's expense, a package of signs conforming to the COMPANY's requirements (except to the extent modified with the approval of the COMPANY due to local legal restrictions), at, on or near the front of the Retail Location, describing the premises only as "Gold Star Chili" and such other signs, if any, as the COMPANY may require in the Manual or otherwise in writing. FRANCHISEE shall not place on display at the Retail Location (interior or exterior) any sign other than those that have been and continue to be approved by the COMPANY for display by FRANCHISEE in the Manual or otherwise in writing.
  • 5.4 Hours of Operation. FRANCHISEE shall keep the Store open for such days and hours as the COMPANY shall reasonably require; provided, however, that nothing herein shall prevent FRANCHISEE from closing the Store to the extent required by local laws.
  • 5.5 Staffing, Inventory.

Source: Item 23 — Receipts (FDD pages 53–163)

What This Means (2025 FDD)

According to the 2025 Gold Star Franchise Disclosure Document, signing the franchise agreement grants Gold Star certain rights and authorities related to the operation and standards of the franchise. Specifically, Gold Star can establish and modify uniform operating standards to maintain quality, service, cleanliness, and customer satisfaction across all franchise locations. These standards encompass various aspects, including ingredients, food preparation methods, menu item specifications, and other product standards.

The agreement also mandates that franchisees adhere to these System Standards, as modified by Gold Star, and operate their businesses in a manner that preserves the goodwill of the Gold Star brand. These System Standards, whether outlined in the manual or communicated in writing, become integral provisions of the franchise agreement.

Furthermore, Gold Star retains the right to request the franchisee to repair and paint the interior and exterior of the Retail Location at reasonable times or upon the reasonable request of the COMPANY. The franchisee is also responsible for maintaining the store's interior, exterior, signs, furniture, and equipment in a clean and attractive condition that meets Gold Star's standards. Gold Star can also request the franchisee to refurbish the store at its own expense to conform to the trade dress, color schemes and presentation of the Marks in a manner consistent with the image then in effect for new Gold Star Chili restaurants under the System.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.