Does Gold Star's consent to a transfer waive any claims it may have against the transferor?

According to Gold Star's 2025 Franchise Disclosure Document, Gold Star's written consent to a transfer does not constitute a waiver of any claims it may have against the transferor. Additionally, it will not be deemed a waiver of Gold Star's right to demand exact compliance with any of the terms of the agreement by the transferee. This protects Gold Star's interests in ensuring that the original franchisee remains liable for any existing breaches or claims, even after the franchise is transferred to a new owner.

This provision is fairly standard in franchising, as franchisors want to ensure they can pursue any outstanding issues with the original franchisee, regardless of the transfer. It also reinforces that the new franchisee is fully responsible for adhering to the franchise agreement's terms from the point of transfer forward.

For a prospective Gold Star franchisee looking to sell their franchise in the future, this means they cannot assume that Gold Star's approval of the transfer absolves them of any prior responsibilities or liabilities. They should ensure all obligations are met and any potential claims are resolved before initiating a transfer to avoid future legal issues. The new franchisee should also be aware that Gold Star can still enforce all terms of the franchise agreement, regardless of any past practices or interpretations.