When is the site review for a Gold Star location performed?
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, the site review can occur either before or after the Franchise Agreement is signed. Gold Star must review and approve or reject a franchisee's proposed retail location and lease. The FDD states that the site review sometimes occurs before the execution of the Franchise Agreement, but it is typically a post-signing activity.
Site selection is a critical step for prospective Gold Star franchisees. The franchisor retains the right to approve or reject any proposed retail location for any reason, at its sole discretion. Factors that Gold Star considers include the suitability of the neighborhood, proximity to other restaurants, population density, traffic flow, parking, customer draws, and visibility of the proposed location.
If a Franchise Agreement is signed before a site is secured, the franchisee has six months to find an approved location. Failure to secure an approved site within this timeframe constitutes a default of the Franchise Agreement. Additionally, the restaurant must open within twelve months of site approval, or the franchisee will be in default. Gold Star provides a representative at the retail location for a minimum of 2 business days and a maximum of 2 calendar weeks to train personnel and advise and consult with you regarding the opening of the Restaurant. This assistance usually coincides with the opening of the Restaurant.