Is the site review by Gold Star always performed before the execution of the Franchise Agreement?
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).
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, site review is not always performed before the execution of the Franchise Agreement. Gold Star reviews and approves or rejects a proposed retail location and lease. The FDD states that site review is sometimes performed before the execution of the Franchise Agreement, and is typically a post-signing activity.
This means that a prospective franchisee might sign the Franchise Agreement before having a location fully approved by Gold Star. This could create a situation where the franchisee is contractually obligated to Gold Star but does not yet have an approved site to operate from.
It is important for a prospective Gold Star franchisee to understand the implications of signing a Franchise Agreement before site approval. If a suitable location is not found within 6 months of signing the Franchise Agreement, the franchisee will be in default. Defaulting on the agreement could lead to termination of the agreement by Gold Star.