What is a 'Special Purpose Outlet' for a Gold Star franchise?

According to the 2025 Gold Star Franchise Disclosure Document, a "Special Purpose Outlet" is defined as a Gold Star Chili restaurant located inside specific venues. These venues include shopping malls or centers, zoos, airports, race tracks, amusement parks, fairgrounds, sports stadiums, hospitals, factories, bars, schools, gas stations, and special events.

This definition is important for prospective franchisees because Gold Star retains the right to establish or license these Special Purpose Outlets within a franchisee's protected territory. However, if the Special Purpose Outlet is a retail location, Gold Star will not operate or license another to operate an additional Gold Star restaurant in the same building as the Special Purpose Outlet.

This clause in the franchise agreement balances the franchisee's territorial rights with Gold Star's ability to reach customers through alternative channels and locations. Franchisees should carefully consider the implications of Special Purpose Outlets when evaluating the potential market and competition within their protected territory.