For a Gold Star Special Purpose Outlet, what area constitutes the Protected Territory?

According to Gold Star's 2025 Franchise Disclosure Document, franchisees operating a Special Purpose Outlet receive a Protected Territory. However, the extent of this territory is limited. For a Gold Star Special Purpose Outlet, the Protected Territory is defined as the relevant building or facility in which the outlet is located.

This means that while Gold Star will not operate or license another traditional Gold Star restaurant within that specific building (e.g., a mall or airport terminal), they retain the right to establish other Special Purpose Outlets or alternative distribution channels within the same Protected Territory. These alternative channels could include grocery stores, convenience stores, or online sales, potentially creating direct competition for the franchisee within their own territory.

Prospective franchisees should be aware that the Protected Territory for a Special Purpose Outlet is significantly smaller than that of a traditional Gold Star restaurant. This limited territory, coupled with the potential for internal competition from other distribution channels, could impact the outlet's sales volume and overall profitability. Therefore, it is crucial to carefully evaluate the specific location and potential for competition before investing in a Gold Star Special Purpose Outlet.