How Does Charleys Franchise Work?

Charleys operates as a quick-service restaurant system: the franchisee hires and directs the team, buys approved inputs, fulfills guest orders and keeps the unit compliant, while Gosh Enterprises, Inc. (“GEI”) controls the authorized menu, operating standards, supplier approvals, technology, marketing rules, data access and inspections under the 2026 FDD.

A Charleys Restaurant sells authorized food and beverages to individual guests and can serve group orders through catering. The customer mix depends heavily on the site: CPS Restaurants can operate in mall food courts, airports, military bases and inline locations, while CPSW Restaurants use inline or freestanding locations and add wings and other chicken-based items.

The FDD cover identifies the core offer as Philadelphia-style cheesesteaks, grilled subs, fries, lemonade and soft drinks. CPSW Restaurants add buffalo-style wings and other chicken items; a Walmart Location is specifically a CPSW Restaurant inside a Walmart Store. The current consumer menu shows that menu categories vary by location, which is consistent with the FDD’s format-specific menu rules.

Demand is not limited to a walk-up counter. Charleys supports direct digital ordering and pickup or delivery through its online ordering experience, while the Charleys Rewards program ties direct in-store, web and app transactions to a guest account. Charleys Catering adds scheduled group orders and, at participating locations, delivery. Item 19 also identifies DoorDash, Uber Eats and Grubhub as third-party delivery platforms present in 2025 restaurant sales data.

Evidence: 2026 FDD cover; Item 16, p. 37; Item 19, p. 42. Official Charleys menu, ordering, rewards and catering pages.

How do the FDD formats differ operationally?

The official franchise-model overview uses real-estate labels such as free-standing, inline/end-cap and nontraditional. Contractually, the 2026 FDD’s CPS, CPSW and Walmart Location classifications control.

The operating cycle is order-driven: demand enters through an approved channel, the transaction is captured in the required technology stack, trained crew members prepare only authorized products to GEI specifications, the order is handed off or delivered, and the franchisee closes the loop through POS data, financial reporting, marketing documentation and quality controls.

The Operations Manual table of contents covers inventory, sales reporting, delivery, staffing, Guest Rewards, food safety, cashier procedures, online orders and product preparation. The Franchise Agreement also requires five years of specified records and permits unannounced GEI inspections.

Evidence: 2026 FDD Item 11, pp. 24–31; Franchise Agreement §§ 4.02–4.03, 9.01–9.06, 11.01–11.03 and 12.01; Operations Manual TOC, Exhibit B.

A trained manager can supervise the Restaurant, but the model is not disclosed as absentee. If the franchisee is an entity, an approved Operating Partner must hold or control at least 10% of equity and voting rights, have authority over operational decisions, complete GEI training, and devote full-time and best efforts to the Charleys Restaurants owned by that franchisee.

Except as the Operations Manual permits otherwise, a trained manager must directly supervise the Restaurant on premises. The franchisee or Operating Partner remains active in oversight, while crew and managers use GEI’s learning-management platform and crew hold required position certifications.

Employment stays with the franchisee: hiring, firing, compensation, personnel policies, benefits, wage-and-hour compliance, records, supervision and discipline are franchisee responsibilities. The Charleys careers page confirms franchised restaurants manage their own teams. GEI may prescribe positions and minimum staffing, but the FDD does not publish current minimums.

The franchisee executes service and employment; GEI sets system rules and oversight; approved suppliers, technology vendors and site counterparties supply constrained inputs. Operations therefore depend on both local execution and compliance with GEI specifications.

Supplier freedom is limited. The franchisee must buy or lease food, beverage, packaging, equipment, fixtures, signs and other specified inputs from suppliers GEI approves, and roughly 95% of ongoing purchases and leases are estimated to be subject to approved or designated sources or GEI standards. An alternate supplier requires written approval.

Item 8 says GEI and its affiliates were not designated or approved product suppliers as of the FDD date, although outside suppliers may pay rebates or marketing allowances to GEI. GEI can change approved brands and suppliers; proposed alternatives require its written approval, including the Supplier Information form where applicable.

GEI may require hardware, software, network and communications upgrades and change system specifications. The Franchise Agreement requires compatible POS and computer systems plus information reasonably required for data, privacy and cybersecurity compliance.

Evidence: 2026 FDD Item 8, pp. 16–19; Item 11, pp. 29–30; Franchise Agreement §§ 9.03–9.04 and 11.02; Walmart Addendum and Sub-Sublease.

Local execution exists inside tight system boundaries. The franchisee controls employment and carries out approved Local Store Marketing, but GEI controls the menu, supplier standards, internet use, brand materials, system procedures and site approval. The Franchise Agreement grants no exclusive territory and authorizes operation only at the approved Restaurant premises.

Item 16 does not restrict which customers the Restaurant may serve at the Restaurant. Item 12 separately limits distribution channels: the Franchise Agreement does not authorize other channels, while GEI retains Internet and other direct-channel rights. Franchisee-created websites, social accounts or online selling require GEI consent.

Local Store Marketing is part of the Advertising and Promotion Obligation: currently 2% of Gross Sales for CPS Restaurants and Walmart Locations and 3% for non-Walmart CPSW Restaurants, plus 1% to the Marketing Fund for each format. Unapproved local advertising requires prior GEI approval, and GEI may establish advertising cooperatives.

At December 31, 2025, Item 20 reports 826 Charleys outlets in the U.S. and territories: 766 franchised and 60 classified as company-owned. GEI states that it does not directly operate those company-owned Restaurants; the 60 outlets are owned and operated by affiliates identified in Item 1.

The FDD establishes the control architecture, but live operating details sit in the current Operations Manual, supplier lists and site-specific agreements. A buyer should verify the versions that will govern the proposed Restaurant and format.

The revenue mechanism is the sale of authorized food and beverages—plus catering and supported delivery where enabled—through a site-specific quick-service Restaurant. The franchisee’s central responsibility is disciplined unit execution through a trained team; GEI’s strongest dependencies are menu/supplier standards, the Operations Manual, mandatory technology and data access.