Besides the franchise agreement, what other agreements and documents might Gold Star reasonably require the transferee to execute?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.4.6 The transferee shall have executed the COMPANY's then-current form of franchise agreement for a term equal to the remaining current term of this Agreement, save and except that there shall be no initial franchise fee payable, and the transferee shall execute such other agreements and documents as the COMPANY may reasonably require.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a transferee—someone taking over an existing franchise—must execute Gold Star's current franchise agreement for the remaining term of the original agreement. However, they won't have to pay an initial franchise fee.
In addition to the franchise agreement, Gold Star may reasonably require the transferee to sign other agreements and documents. This could include an assumption agreement, where the transferee agrees to take on all of the original franchisee's obligations. Gold Star also requires the transferor to execute a general release of any claims against Gold Star and its affiliates.
These requirements ensure that the new franchisee is fully committed to the Gold Star system and that Gold Star is protected from potential liabilities. Prospective franchisees should be prepared to meet these requirements if they plan to transfer their franchise in the future.