What are some examples of terms that may differ in a new Gold Star franchise agreement upon renewal?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the terms of a new franchise agreement may differ significantly from the original agreement. This means that when a franchisee renews their Gold Star franchise, the conditions under which they operate could change substantially.
Specifically, the 2025 FDD indicates that potential changes include, but are not limited to, the terms of the franchise agreement itself, potentially higher continuing franchise fees, increased advertising expenditures, and other types of fees or charges. The term length of the agreement could also be different.
Furthermore, the renewal agreement might involve a different protected territory for the franchisee, altered renewal rights, and other varying terms. This implies that franchisees need to carefully review the new franchise agreement offered by Gold Star during the renewal process to understand the full scope of these changes and their potential impact on their business.