From what date does interest accrue on costs and expenses owed by the Gold Star franchisee to the Company?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
If the COMPANY incurs any costs or expenses (including but not limited to attorneys' fees, court costs, other litigation expenses, settlement expenses or other expenses of any kind) in enforcing or protecting the COMPANY's rights under this Agreement, or any judgments, orders or awards relating thereto, or in preparation for or investigation or contemplation thereof, the COMPANY shall be entitled to recover from FRANCHISEE all such costs and expenses on demand, with interest from the date due pursuant to Section 8.3, above.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if Gold Star incurs any costs or expenses while enforcing its rights under the Franchise Agreement, the franchisee is responsible for covering these costs. These costs may include attorney's fees, court costs, litigation expenses, and settlement expenses.
Gold Star will demand that the franchisee pay these costs, and interest on these costs will accrue from the date they are due, as specified in Section 8.3 of the agreement. This means that if a franchisee fails to pay these expenses promptly, they will incur interest charges on the outstanding balance.
Prospective franchisees should carefully review Section 8.3 of the Franchise Agreement to understand the specific terms and conditions related to payment due dates and interest accrual. Understanding these obligations is crucial for managing the financial responsibilities associated with operating a Gold Star franchise.