What is the consequence if a Gold Star franchisee violates local health regulations?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.5.7 FRANCHISEE violates any federal, state or local laws, rules or regulations, specifically including but not limited to the rules and regulations of any local board of health having jurisdiction over the Store.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if a franchisee violates any federal, state, or local laws, rules, or regulations, including those of a local board of health, it constitutes a breach of the franchise agreement.
This violation gives Gold Star grounds for terminating the franchise agreement. Gold Star must provide written notice of the failure to comply, and the franchisee typically has a period to cure the failure. However, the specific cure period for health regulation violations is not detailed in this section, but a general failure to pay fees has a 10-day cure period.
It's important to note that the termination rights of Gold Star may be restricted by local franchise laws, in which case the agreement will be interpreted to conform with such local laws. Franchisees should be aware of all applicable health regulations and maintain strict compliance to avoid potential termination of their franchise agreement.