What is the definition of 'de-identification' in the context of a terminated Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1 De-Identification; Wind-Down of Business. Upon the termination or expiration of this Agreement, or upon the permanent closing or abandonment of the Store or the Business, the following provisions shall apply:
- 15.1.1 All rights, privileges and licenses granted by the COMPANY to FRANCHISEE will immediately cease, be null and void, and of no further force and effect, and all such privileges and licenses will immediately revert to the COMPANY.
- 15.1.2 FRANCHISEE shall immediately discontinue the use of the System and the Marks. All rights granted herein with respect to the Marks and System shall thereupon be deemed canceled and terminated.
- 15.1.3 Unless FRANCHISEE receives written notice of the COMPANY's exercise of its options set forth in Section 15.2 below, after thirty (30) days have elapsed since the effective date of termination, FRANCHISEE shall immediately remove the Marks from all buildings, signs, fixtures and furnishings, and within thirty (30) days' after written notice from the COMPANY, alter and paint all structures and other improvements maintained pursuant to this Agreement a design and color which is basically different from the COMPANY's authorized building design and painting schedule and otherwise assist COMPANY in every way possible to bring about a complete and effective wind-down and de-identification of the Business. If FRANCHISEE shall fail to make or cause to be made any such removal, alteration or repainting, then the COMPANY shall have the right to enter upon the Retail Location, without being deemed guilty of trespass or any other tort or civil wrong, and make or cause to be made such removal, alterations and repainting at the reasonable expense of FRANCHISEE, which expense FRANCHISEE shall pay the COMPANY upon demand. FRANCHISEE shall not be deemed to have waived any rights which FRANCHISEE may have under any Franchise Law by reason
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, de-identification refers to the process a franchisee must undertake upon termination or expiration of their franchise agreement, or upon permanently closing or abandoning their Gold Star store.
Specifically, the franchisee is required to immediately discontinue using the Gold Star system and marks. Unless Gold Star exercises its option to take over the location, the franchisee has 30 days after the termination date to remove all Gold Star marks from the buildings, signs, fixtures, and furnishings. Additionally, within 30 days of written notice from Gold Star, the franchisee must alter and repaint the structures to a design and color that is distinctly different from Gold Star's authorized building design and painting schedule. The franchisee must also assist Gold Star in bringing about a complete and effective wind-down and de-identification of the business.
If the franchisee fails to comply with these de-identification requirements, Gold Star has the right to enter the retail location and make the necessary removals, alterations, and repainting at the franchisee's expense. The franchisee is responsible for paying these expenses to Gold Star upon demand. This ensures that a former Gold Star location no longer represents the brand and prevents confusion among customers.