Besides what is set forth in Section 6.8, what damages is Gold Star not liable for?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
EXCEPT AS SPECIFICALLY SET FORTH IN SECTION 6.8, ABOVE, THE COMPANY SHALL NOT BE LIABLE TO FRANCHISEE FOR ANY DAMAGES, COSTS, OR EXPENSES WHATSOEVER, INCLUDING BUT NOT LIMITED TO, ANY LOSS OF PROFITS OR BUSINESS OPPORTUNITIES, OR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER RELATING TO ANY ACTION OR OTHER MATTER INVOLVING THE MARKS OR GOODWILL ASSOCIATED THEREWITH.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, outside of the conditions outlined in Section 6.8 regarding infringement claims, Gold Star is not liable to the franchisee for various types of damages, costs, or expenses. This includes, but is not limited to, any loss of profits or business opportunities. Additionally, Gold Star will not be responsible for incidental or consequential damages of any kind related to any action or matter involving the trademarks or goodwill associated with the Gold Star brand.
This means that if a franchisee experiences financial losses, missed opportunities, or other indirect damages due to issues not covered under the specific infringement protections in Section 6.8, they cannot seek compensation from Gold Star. This allocation of risk places a significant burden on the franchisee to manage their business effectively and anticipate potential challenges.
Prospective franchisees should carefully review Section 6.8 to understand the specific protections Gold Star offers in cases of trademark infringement. They should also consider the types of risks and potential damages that are not covered by this clause and assess their ability to manage those risks independently. Understanding the limitations of Gold Star's liability is crucial for making an informed investment decision.