- Franchise 500 Rank
-
N/R Not ranked last year
- Initial investment
-
$499K - $1M
- Units as of 2021
-
70 7% over 3 years
Gold Star Chili is a family-owned business founded in 1965 by four brothers and their extended family who immigrated from Jordan to Cincinnati, Ohio. The brothers started Gold Star Chili with the hope of capturing the American dream of owning their own business. With over 60 franchises located throughout the United States and more opportunities to grow, the founders and their descendants may still be involved in running and working for the company.
Gold Star Chili excels by offering unique, delicious food and quick, friendly service. Not only do they serve their famous chili, but they have since evolved to include culinary burgers and salads on their menu to cater to all of their guests. A streamlined menu, tableside service, and franchise support make Gold Star Chili a community favorite.
Why You May Want to Start a Gold Star Chili Franchise
An ideal Gold Star Chili franchisee is someone who is enthusiastic, passionate, and driven. No previous restaurant experience is required, and the Gold Star Chili team provides in-store and classroom training to all franchisees. During the opening days and beyond, additional support is given, follow-up visits for the first, second, and third months of your opening days to make sure things are running smoothly. They may also answer any questions or concerns that arise with services from a calibration specialist.
Gold Star Chili is a solid mix of quick-casual, full-service, and drive-thru options to accommodate customers who would like to eat in or eat on the go. Because of this, a Gold Star Chili location may best function in an area with both residential and commercial properties that has high traffic and accessible entrance and exit points.
The Gold Star Chili team can help you find the optimal location for your franchise using demographic research. They also inform franchisees of future marketing efforts after opening day. The analytics team focuses on traffic data, social media usage, and geo-fencing to ensure your location is represented and recognized as part of the Gold Star Chili family.
What Might Make a Gold Star Chili Franchise a Good Choice?
Because of Gold Star Chili's good reputation and long existence in its market, becoming a franchisee may offer a more predictable outcome than investing in a completely new brand that may struggle to thrive in an already crowded and competitive industry.
To be part of the Gold Star Chili team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How To Open a Gold Star Chili Franchise
As you decide if opening a Gold Star Chili franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Gold Star Chili franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Gold Star Chili franchising team questions.
Company Overview
About Gold Star
Business Overview
| Franchising Since | 1966 (58 years) |
|---|---|
| # of employees at HQ | 24 |
| Where seeking |
This company is offering new franchises throughout the US. |
| # of Units | 70 (as of 2021) |
|
|
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Information for Franchisees
Here's what you need to know if you're interested in opening a Gold Star franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
|
Initial Franchise Fee
|
$15,000 - $30,000 |
|---|---|
|
Initial Investment
|
$498,500 - $1,006,000 |
|
Net Worth Requirement
|
$500,000 - $750,000 |
|
Cash Requirement
|
$150,000 - $200,000 |
|
Royalty Fee
|
5% |
|
Ad Royalty Fee
|
4% |
|
Term of Agreement
|
10 years |
| Is franchise term renewable? | Yes |
Financing Options
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
| Third Party Financing | Gold Star has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory, payroll |
|---|
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
| On-The-Job Training | 82 hours |
|---|---|
| Classroom Training | 62 hours |
| Ongoing Support |
Purchasing Co-ops
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
Security & Safety Procedures
Lease Negotiation
Field Operations
Site Selection
Franchisee Intranet Platform
|
| Marketing Support |
Co-op Advertising
Ad Templates
Regional Advertising
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App
|
Operations
Additional details about running this franchise.
| Is absentee ownership allowed? | No |
|---|---|
|
Can this franchise be run from home/mobile unit?
|
No |
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Can this franchise be run part time?
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No |
|
Are exclusive territories available?
|
Yes |
Additional Rankings
Curious to know where Gold Star ranked on other franchise lists? Find out below.
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