What was the address of the Hartwell Gold Star franchise operated by the defendants?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
igation**
Pending Item:
Gold Star Chili, Inc. and GSC Properties, LLC v. 21 Partners Group LLC and Rasem Daoud. Gold Star and GSC Properties filed a complaint against 21 Partners Group LLC, an existing franchisee, and Rasem Daoud, its owner, on June 14, 2024. On June 9, 2017, the
defendants executed a Lease Agreement with GSC Properties and a Franchise Agreement with Gold Star pursuant to which defendants operated a franchise (the "Hartwell Gold Star") at 21 East Galbraith Road, Cincinnati, Ohio 45216 (the "Property").
On October 9, 2021, there was a fire at the Property that resulted in a total loss of the Hartwell Gold Star. After the fire, the defendants ceased operating, never rebuilt, and retained insurance proceeds which were to be used to rebuild, the Hartwell Gold Star.
Source: Item 3 — Litigation (FDD pages 10–11)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Hartwell Gold Star franchise, operated by 21 Partners Group LLC and Rasem Daoud, was located at 21 East Galbraith Road, Cincinnati, Ohio 45216. The franchise operated at this property under a Lease Agreement with GSC Properties and a Franchise Agreement with Gold Star, both executed on June 9, 2017.
The document indicates that the Hartwell Gold Star suffered a total loss due to a fire on October 9, 2021, after which the defendants ceased operations and did not rebuild the location. This ultimately led to a legal dispute between Gold Star and the franchisee regarding insurance proceeds meant for rebuilding the franchise.
For a prospective franchisee, this information highlights the importance of maintaining adequate insurance coverage and adhering to the franchisor's requirements for the use of insurance proceeds in the event of a significant loss. It also demonstrates the potential for legal disputes to arise from unforeseen circumstances and the importance of clear contractual obligations.