What two restaurant concepts does Gold Star own and franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company owns and franchises the Gold Star Chili and Tom + Chee restaurant concept. The franchise arrangement for both brands is documented in the form of a franchise agreement. The franchise arrangement between the Company as the Franchisor and the franchisee as the customer requires the Company to perform various activities to support the brand that do not directly transfer goods and services to the franchise, but instead represent a single performance obligation, which is the transfer of the franchise license. The intellectual property subject to the franchise license is symbolic intellectual property as it does not have significant standalone functionality, and substantially all of the utility is derived from its association with the Company's past or ongoing activities. The nature of the Company's promise in granting the franchise license is to provide the franchisee with access to the brand's symbolic intellectual property over the term of license. The services provided by the Company are highly interrelated with the franchise license and as such are considered to represent a single performance obligation.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company owns and franchises both Gold Star Chili and Tom + Chee restaurant concepts. The franchise arrangement for both brands is formalized through a franchise agreement. This agreement outlines the obligations of Gold Star as the franchisor to support the brand, primarily through the transfer of the franchise license, which is considered a single performance obligation.
For prospective franchisees, this means that when investing in a Gold Star Chili or Tom + Chee franchise, the franchise agreement covers the rights and responsibilities for either brand. Gold Star considers the franchise license as a single performance obligation, meaning that the initial franchise fee, ongoing royalties, and advertising fees are all tied to the overall licensing right rather than separate services.
Furthermore, franchisees are required to purchase proprietary chili from Gold Star, ensuring consistency in product quality. This dual-brand ownership provides potential franchisees with options to consider when deciding which restaurant concept aligns best with their investment goals and market preferences.