What is the definition of 'Retail Location' in the context of the Gold Star franchise agreement termination?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
signated by the COMPANY in writing for use by FRANCHISEE in connection with the System and operation of a Restaurant, and as modified by any and all changes, deletions and additions made by the COMPANY from time to time, are referred to collectively as the "Marks"); and
WHEREAS, FRANCHISEE desires to obtain the benefits of the use and sale of the COMPANY's chili products and the System established by the COMPANY and to obtain the benefit of the knowledge, advice and goodwill of the COMPANY in the operation of a Restaurant and the right to purchase and sell the COMPANY's chili and related products, and therefore FRANCHISEE has applied to the COMPANY for a franchise to operate one (1) Restaurant based upon the terms and conditions hereinafter set forth, exclusively at the Retail Location set forth on the cover page thereof (the "Retail Location"), and for the right to use, solely in connection therewith the System and Marks.
NOW, THEREFORE, in consideration of the above premises and the mutual covenants herein contained, the parties agree as follows:
1. GRANT OF FRANCHISE.
1.1 Grant. COMPANY hereby grants unto FRANCHISEE, and FRANCHISEE hereby accepts, upon the terms and conditions of this Agreement, a license and franchise to establish and operate a Restaurant at the Retail Location (sometimes
herein referred to as the "Restaurant" or the "Store" and the business conducted pursuant to this Agreement is sometimes herein referred to as the "Business"), and to use the Marks and System solely in connection therewith, solely at the Retail Location and in advertising therefor, without any right to sublicense, and in compliance with the provisions of this Agreement.
- 1.2 Term. The term of this Agreement and the franchise granted herein shall be for a term of ten (10) years, or, if less, the term of the lease for the Retail Location (the term is set forth on the cover page of this Agreement) or until otherwise terminated as hereinafter provided; provided FRANCHISEE has secured, and continues to secure, by ownership or lease, the Retail Location for the same term.
- 1.3 Protected Territory. Except for the protections provided in this Section 1.3, the franchise and other rights granted herein are non-exclusive. The COMPANY agrees not to operate or license another to operate a Restaurant within the territory defined on the cover page hereof (the "Protected Territory") so long as FRANCHISEE: (i) fully complies with all methods, procedures, standards and specifications required by the COMPANY in the Manual (defined in Section 3.3 below) or otherwise in writing; and (ii) does not violate any of the other provisions of this Agreement or has cured such violation in the time period provided for herein.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, the 'Retail Location' is the specific site where the franchisee is authorized to operate their Gold Star restaurant. This location is exclusively defined on the cover page of the franchise agreement. Gold Star grants the franchisee a license to establish and operate a restaurant at this Retail Location, using the Gold Star system and marks solely at that location.
The franchise agreement emphasizes that the franchisee's rights are strictly tied to the Retail Location. Franchisees are permitted to engage only in the business of operating the store at the Retail Location and must adhere to the Gold Star system. They cannot conduct the Gold Star business at any other location, although they can make deliveries within their protected territory, provided they follow Gold Star's policies.
Upon termination or expiration of the franchise agreement, all rights granted to the franchisee by Gold Star immediately cease. The franchisee is then obligated to de-identify the location, effectively removing all branding and indications of Gold Star. This underscores the importance of the Retail Location as the sole point of authorized operation and the restrictions placed upon the franchisee both during and after the franchise term.