What forms must a Gold Star franchisee execute in connection with a transfer or assignment by the company?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
he transferee will enter into a written assumption, in a form satisfactory to the COMPANY, assuming and agreeing to discharge all of
- FRANCHISEE's obligations under this Agreement prior to and after the date of assumption;
- 13.4.5 The transferee shall have paid the COMPANY its then-current transfer fee. The amount of the transfer fee shall be set by the COMPANY from time to time in the exercise of its absolute discretion. The transfer fee as of the date of this Agreement, but subject to change, is Three Thousand Five Hundred Dollars ($3,500.00).
- 13.4.6 The transferee shall have executed the COMPANY's then-current form of franchise agreement for a term equal to the remaining current term of this Agreement, save and except that there shall be no initial franchise fee payable, and the transferee shall execute such other agreements and documents as the COMPANY may reasonably require.
- 13.5 Exceptions to Transfer Restrictions.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, if a franchisee transfers their franchise to a new owner, the new owner (transferee) must execute Gold Star's then-current form of franchise agreement. This agreement will be for a term equal to the remaining term of the original franchise agreement. The transferee does not have to pay an initial franchise fee. The transferee must also execute any other agreements and documents that Gold Star may reasonably require.
In addition to the franchise agreement, the transferor (original franchisee) and its shareholders, members, and partners must execute a general release. This release must be in a form and substance satisfactory to Gold Star and must release any and all claims against Gold Star, its affiliates, shareholders, directors, officers, and employees. This requirement may also need to conform to local franchise laws.
Furthermore, the transferee must enter into a written assumption, in a form satisfactory to Gold Star, agreeing to discharge all of the franchisee's obligations under the franchise agreement both before and after the date of assumption. The franchisee will also need to complete and execute an "Authorization for Electronic Fund Transfers" form and any other form provided by Gold Star for authorizing electronic debits.