Does Exhibit B specify provisions that Gold Star may require in the Retail Location Lease?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT B TO FRANCHISE AGREEMENT
LEASE PROVISIONS
-
- A provision that restricts the use of the premises solely to the operation of the franchised business;
-
- A provision permitting the COMPANY to enter the Retail Location to de-identify the Business without penalty in accordance with Section 14 of this Agreement.
-
- A provision requiring the landlord to provide the COMPANY with reasonable advanced notice if there is any contemplated termination and granting the COMPANY a reasonable amount of time, at the COMPANY's option, to avoid such termination (upon any such event, FRANCHISEE shall reimburse the COMPANY for all costs and expenses incurred in connection with such avoidance).
-
- A provision that reserves to the COMPANY the right, but not the obligation, to assume FRANCHISEE's leasehold interest, with the right to sublease, upon termination or expiration of the lease or of this Agreement, without any assessment of additional fees, penalties, or rent acceleration; and
-
- A provision that modifies the term of the lease so that it is coterminous with this Agreement.
-
- A provision that gives the COMPANY the right, but not the obligation, to enter the premises or make modifications necessary to protect the Marks or the System or to cure any default under this Agreement; and
-
- A provision that restricts the lease from being modified in a manner that could materially affect the COMPANY's rights with respect to the lease, without the COMPANY's prior written consent.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Exhibit B outlines specific lease provisions that Gold Star may require in the Retail Location Lease. Gold Star's approval of a franchisee's lease may be conditional upon including these provisions.
The provisions listed in Exhibit B include restricting the premises' use solely to the franchised business operation. It also allows Gold Star to enter the retail location to de-identify the business without penalty, as per Section 14 of the agreement. The landlord must provide Gold Star with advanced notice of any contemplated termination, giving Gold Star the option to avoid termination, with the franchisee reimbursing Gold Star for associated costs.
Furthermore, Gold Star reserves the right to assume the franchisee's leasehold interest upon termination or expiration of the lease or the Franchise Agreement, including the right to sublease without additional fees or penalties. The lease term may be modified to be coterminous with the Franchise Agreement. Gold Star also has the right to enter the premises or make necessary modifications to protect the Marks or the System or to cure any default under the Franchise Agreement.
Finally, the lease cannot be modified in a way that materially affects Gold Star's rights without their prior written consent. These stipulations ensure Gold Star maintains control over the brand and premises, even in situations where the franchisee faces difficulties or the agreement is terminated.