What is the definition of 'Marks' in the context of a terminated Gold Star franchise agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, upon termination or expiration of the franchise agreement, the franchisee must immediately discontinue the use of the 'Marks'. These 'Marks' refer to the trademarks, service marks, logos, and other proprietary identifiers associated with the Gold Star brand. All rights granted to the franchisee regarding these 'Marks' are immediately canceled and terminated.
Specifically, the franchisee is required to remove the 'Marks' from all buildings, signs, fixtures, and furnishings within thirty days after the effective date of termination, unless Gold Star exercises its option to take over the location. Additionally, within thirty days of written notice from Gold Star, the franchisee must alter and repaint all structures to a design and color that is distinctly different from Gold Star's authorized building design and painting schedule. This ensures a complete 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 perform the necessary removals, alterations, and repainting at the franchisee's expense. This expense is to be paid by the franchisee upon demand from Gold Star. This clause underscores the importance of protecting Gold Star's brand identity and preventing any potential confusion after a franchise agreement ends.