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

According to the 2025 Gold Star Franchise Disclosure Document, a "Special Purpose Outlet" is a Gold Star 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 because it affects the franchisee's territory and fees.

Notably, the Protected Territory for a Special Purpose Outlet is limited to the building or facility where it is located. This means that while a franchisee operating a standard Gold Star restaurant might have a Protected Territory based on population density and traffic, a Special Purpose Outlet's territory is much smaller and more defined. Gold Star also retains the right to establish Special Purpose Outlets within another franchisee's Protected Territory, which could increase competition for franchisees operating traditional locations.

Furthermore, the continuing franchise fee for Special Purpose Outlets may differ from the standard fee. Gold Star has the discretion to set this fee, and in most cases, it is 4% of Gross Sales, compared to the standard 5% for traditional locations. This lower fee could be an incentive for franchisees to operate in these specialized locations, but it's important to note that the Brand Building Fee may also be assessed at 4% of Gross Sales for Special Purpose Outlets. Prospective franchisees should carefully consider these differences when evaluating the potential profitability of a Special Purpose Outlet versus a traditional Gold Star restaurant.