What constitutes a default of the Gold Star Franchise Agreement regarding site selection and opening?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
If you and Gold Star enter into a Franchise Agreement before you complete the site selection process and if your Retail Location is not selected and approved (together with any lease) within 6 months of the execution of the Franchise Agreement, you will be in default of the Franchise Agreement. If you fail to open your franchised Restaurant for business within twelve (12) months of the approval of your Retail Location, you will be in default of the Franchise Agreement. You will have 10 days after receipt of Gold Star's written notice of default to remedy the default. If the default is not remedied timely and satisfactorily, Gold Star may terminate your Franchise Agreement, at its option.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee can be in default of their Franchise Agreement if they fail to meet certain deadlines related to site selection and opening their restaurant. Specifically, if a Retail Location is not selected and approved (together with any lease) within 6 months of signing the Franchise Agreement, the franchisee will be in default.
Additionally, a franchisee will be in default if they fail to open their Gold Star franchised Restaurant for business within twelve (12) months of the approval of their Retail Location.
In the event of either of these defaults, Gold Star will provide written notice, and the franchisee will have 10 days to remedy the default. If the default is not resolved satisfactorily within this timeframe, Gold Star has the option to terminate the Franchise Agreement.