Does Gold Star's consent to a transfer waive its right to demand compliance with the agreement by the transferee?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.10 No Waiver.
The COMPANY's written consent to any Transfer subject to the restrictions of this Section shall not constitute a waiver of any claims it may have against the transferor, nor shall it be deemed a waiver of the COMPANY's right to demand exact compliance with any of the terms of this Agreement by the transferee.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star's consent to a transfer does not waive its right to demand compliance with the franchise agreement terms by the transferee.
Specifically, Gold Star retains all claims against the transferor, meaning the original franchisee, even after consenting to the transfer. This protects Gold Star's interests by ensuring the original franchisee remains liable for any breaches that occurred before the transfer.
Furthermore, Gold Star's consent to the transfer does not waive its right to demand exact compliance with the franchise agreement terms from the new franchisee (the transferee). This means the new franchisee is fully responsible for adhering to all terms and conditions of the franchise agreement from the moment of transfer. This provision ensures that the standards and obligations of the franchise system are maintained even after a transfer of ownership.