What is the sole purpose of Gold Star's production and warehouse facility?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Gold Star owns, operates and manages chili restaurants known as GOLD STAR and GOLD STAR CHILI Restaurants (each a "Restaurant"), sells Restaurant franchises (each a "Franchise") to others (each a "Franchisee"), and operates Gold Star's production and warehouse facility, the
sole purpose of which is to produce proprietary food and other products which Gold Star then sells to our third-party distributor.
Gold Star, through its production and warehouse facility, sells its proprietary food and other products to its third-party distributor, who in turn sells these products and others to Franchisees. Gold Star also sells its chili through other traditional and non-traditional distribution channels, methods and venues, including other food service establishments or concessions, zoos, airports, racetracks, amusement parks, fairgrounds, sports stadiums, multi-branded facilities, hospitals, bars, special events, grocery stores, convenience stores and food brokers. Gold Star also sells other products approved by Gold Star for Restaurant sale or use to Restaurant Franchisees, licensees and others.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 7–10)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the sole purpose of Gold Star's production and warehouse facility is to produce proprietary food and other products. Gold Star then sells these products to a third-party distributor.
This means that Gold Star controls the production of key ingredients and products used in its restaurants. This allows them to maintain consistency and quality control across all franchise locations. Franchisees benefit from this arrangement because they can rely on a consistent supply of proprietary products, ensuring that customers receive the same Gold Star experience regardless of location.
Furthermore, Gold Star sells its proprietary food and other products to its third-party distributor, who in turn sells these products and others to Franchisees. Gold Star also sells its chili through other traditional and non-traditional distribution channels, methods and venues, including other food service establishments or concessions, zoos, airports, racetracks, amusement parks, fairgrounds, sports stadiums, multi-branded facilities, hospitals, bars, special events, grocery stores, convenience stores and food brokers. This distribution model ensures that franchisees have access to the necessary products while also allowing Gold Star to explore additional revenue streams through diverse sales channels.