What is the dependency between the Gold Star franchise agreement term and the lease for the Retail Location?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, the franchise agreement's term is directly tied to the lease term for the retail location. The standard term for a Gold Star franchise agreement is ten years. However, if the lease for the retail location is shorter than ten years, the franchise agreement will end when the lease expires.
To maintain the franchise agreement for the full ten-year term, the franchisee must secure and maintain control of the retail location, either through ownership or a lease, for the entire duration. This means a franchisee needs to ensure their lease covers the full ten years to align with the franchise agreement's term.
This dependency is a critical consideration for prospective Gold Star franchisees. If a franchisee desires to move their store to another location during the agreement, due to the lease terminating through no fault of their own, they must apply for approval to relocate and purchase a franchise for the new location. However, if the lease terminates due to any fault of the franchisee, Gold Star has the option to terminate the franchise agreement.