What documents must a Gold Star franchisee execute to renew their franchise agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
o the COMPANY and its affiliates have been satisfied prior to renewal, and timely met throughout the term of this Agreement;
- 16.1.6 FRANCHISEE is in compliance with the standards set forth in the COMPANY's Manual, has made such modernization and renovations (including, without limitation, signs, furnishings, interior and exterior decor, fixtures, equipment and structural changes) and repairs and maintenance to the Retail Location as the COMPANY may have required to comply with the COMPANY's then current standards in effect at the time of renewal and satisfactorily completes and causes any Manager or Operator or other key employee to satisfactorily complete any required initial or refresher training program;
- 16.1.7 Within thirty (30) days of receipt thereof, FRANCHISEE executes the COMPANY's then current form of franchise agreement and all other documents, agreements and instruments then customarily used by the COMPANY in granting Restaurant franchises, which agreement shall supersede this Agreement upon the expiration of this Agreement. The terms of such new franchise agreement may differ materially from those in this Agreement, including but not limited to the terms of the franchise agreement, higher continuing franchise fees, higher advertising expenditures, higher fees or charges of other types, a different term,
- different Protected Territory, different renewal rights and other different terms of any kind whatsoever); and
- 16.1.8 At the time of execution of the new franchise agreement pursuant to subsection 16.1.7 above, FRANCHISEE delivers to the COMPANY the then current renewal fee by certified check, such renewal fee to be in lieu of the initial franchise fee required under the new franchise agreement.
- 16.2 New Franchise Agreement. Upon receipt of the FRANCHISEE's written notice of intent to exercise the option to renew, the COMPANY shall, within thirty (30) days, forward to FRANCHISEE a copy of the then current franchise documents for Restaurant franchises then being granted by the COMPANY to prospective franchisees in that state, or notice of the COMPANY's denial of renewal for any of the reasons set forth in this Section 16. If the COMPANY accepts renewal, and FRANCHISEE subsequently defaults under any of the conditions in this Section 16, the COMPANY may rescind renewal upon so notifying FRANCHISEE in accordance with any mandatory notice requirements imposed by governing Franchise Law.
- 16.3 Failure to Exercise Option. If FRANCHISEE fails to fully and timely satisfy any of the conditions specified under this Section 16, such failure shall be deemed to be an election by FRANCHISEE not to exercise its option to renew.
- 16.4 Local Franchise Laws. If applicable mandatory provisions of the Franchise Laws of the state in which the Store is located require that the COMPANY give notice of expiration, or notice of a decision not to renew, to FRANCHISEE prior to expiration of the term of this Agreement, then this Agreement shall be deemed to remain effective until the COMPANY has given such notice of expiration and the applicable time period, if any, required to pass before the notice becomes effective has expired.
- **17.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, to renew a franchise agreement, a franchisee must execute Gold Star’s then-current form of franchise agreement and all other documents, agreements, and instruments then customarily used by Gold Star in granting Restaurant franchises. This new agreement will supersede the original agreement upon its expiration.
To be eligible for renewal, the Gold Star franchisee must provide written notice of their intent to renew between six and nine months before the expiration of the current agreement. They must also secure the premises for the retail location through ownership or a lease that is satisfactory to Gold Star for the renewal term. Additionally, the franchisee, along with their partners, members, and shareholders, must execute a general release, in a form and substance satisfactory to Gold Star, that releases any and all claims against Gold Star and its affiliates, shareholders, directors, officers, and employees.
Furthermore, the franchisee must not be in default of any terms, conditions, covenants, or provisions of the existing agreement or any other agreement with Gold Star or its affiliates at the time of the renewal notice and at the end of the agreement term. The franchisee must have also substantially complied with all such agreements during the term of the original agreement. All of the franchisee's accrued monetary obligations to Gold Star and its affiliates must be satisfied, and they must have been met in a timely manner throughout the agreement's term.
Finally, the franchisee must comply with the standards set forth in Gold Star’s Manual, including making any required modernizations and renovations to the retail location. The franchisee must also ensure that they and any manager, operator, or other key employee satisfactorily complete any required initial or refresher training programs. At the time of executing the new franchise agreement, the franchisee must deliver the then-current renewal fee to Gold Star by certified check, which will serve as the initial franchise fee for the new agreement. The terms of the new franchise agreement may differ materially from the original agreement, potentially including higher fees, different terms, and different protected territories.