What constitutes a breach of agreement that could lead to termination of the Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.5.1 FRANCHISEE fails to make or cause to make any payment of any Brand Building Fee, continuing franchise fee or other fee or payment due hereunder, and FRANCHISEE fails to cure such failure to pay within 10 days after the COMPANY's written notice thereof;
- 14.5.2 FRANCHISEE (or any Related Party) breaches any term or condition of (a) this Agreement (except to the extent covered by Section 14.3 or 14.4); or (b) any term or condition of any other agreement or obligation with the COMPANY or its affiliates;
- 14.5.3 FRANCHISEE fails to sell Products of the highest quality or otherwise fails to comply with the COMPANY's standards;
- 14.5.4 FRANCHISEE or the Retail Location fails any inspection performed by COMPANY herein;
- 14.5.5 FRANCHISEE defaults under or fails to perform any term or condition of any Lease, mortgage, deed of trust or other agreement covering the Business or the Retail Location;
- 14.5.6 FRANCHISEE shall have failed to open the Store for business to the general public in compliance with this Agreement within two-hundred and seventy (270) days after the Retail Location is approved by the COMPANY; or
- 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.
- 14.6 Severability. In the event that any mandatory provision of any local Franchise Law in effect in the FRANCHISEE's jurisdiction restricts the rights of the COMPANY to terminate this Agreement pursuant to this Section 14, then the COMPANY's rights of termination under this Section 14 will be deemed to be amended and shall be interpreted so as to be in conformance with such local Franchise Law, if any.
- 14.7 Injunctive Relief. FRANCHISEE recognizes that the failure of FRANCHISEE to comply with various provisions of this Agreement (including, without limitation, Sections 6, 11 and 12) could cause irreparable damage to the COMPANY and the System in a manner that could not reasonably or adequately
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, several actions or failures can lead to the termination of the franchise agreement. These include failing to make payments such as Brand Building Fees or continuing franchise fees within 10 days of written notice from Gold Star. Additionally, breaching any term or condition of the Franchise Agreement or any other agreement with Gold Star or its affiliates can result in termination.
Further reasons for termination involve not meeting Gold Star's standards for product quality or failing inspections. Defaulting on lease agreements, mortgages, or any agreement covering the business or retail location also constitutes a breach. Failing to open the store within 270 days after the retail location is approved can lead to termination as well.
Finally, violating any federal, state, or local laws, rules, or regulations, including those of local health boards, is grounds for termination. Gold Star also retains the right to seek injunctive relief for breaches of the agreement that could cause irreparable damage to the company or the franchise system, such as violations of operational standards or confidentiality agreements.