What is the condition that triggers the Gold Star franchisee's obligation to notify the company of litigation?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.15 Notice of Litigation. FRANCHISEE will notify the COMPANY in writing within five (5) days after the commencement of any action, suit or proceeding, or of the issuance of any order, writ, injunction, aware or decree of any court or other governmental agency, relating to FRANCHISEE's compliance with health or safety standards at, or which may otherwise adversely affect the operation or financial condition of, the Store.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee must notify Gold Star in writing within five days of the commencement of any action, suit, or proceeding. This also applies to the issuance of any order, writ, injunction, award, or decree from a court or governmental agency.
The notification requirement is triggered if the action relates to the franchisee's compliance with health or safety standards at the store. It also applies if the action may otherwise adversely affect the operation or financial condition of the Gold Star store.
This means a Gold Star franchisee must promptly inform Gold Star of any legal or regulatory issues that could impact the health and safety standards of the store, or its overall operation and financial stability. This allows Gold Star to take appropriate action to protect its brand and system, and to provide support to the franchisee if needed. Failing to provide timely notice could have legal and financial repercussions for the franchisee.