Does the Gold Star franchise agreement address relocation of the Retail Location?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.5 Relocation. If FRANCHISEE desires to move its Store to another location during the term of this Agreement (including but not limited to a desire to move because FRANCHISEE's lease, or any extension or renewal thereof, terminates during the term of this Agreement through no fault of FRANCHISEE), FRANCHISEE must apply for and be granted approval to relocate (the COMPANY is not obligated to grant such approval) and to purchase a franchise for a different location, must satisfactorily complete the site selection process and must sign and comply with the COMPANY's then current form of franchise agreement, including but not limited to the fee (including initial, weekly, advertising and other fees), appearance, design, lease and other requirements thereof. If FRANCHISEE's lease, or any extension or renewal thereof, terminates during the term of this Agreement due to any fault of FRANCHISEE, this Agreement shall terminate at the option of the COMPANY upon written notice from the COMPANY.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the franchise agreement does address the relocation of a store. Specifically, if a franchisee wants to move their Gold Star restaurant to a different location during the term of the agreement, they must apply for and receive approval from Gold Star. However, Gold Star is not obligated to grant this approval.
To relocate, the franchisee must also purchase a franchise for the new location, successfully complete the site selection process, and sign Gold Star's current franchise agreement. This includes adhering to all current fees (initial, weekly, advertising, etc.), appearance, design, lease, and other requirements.
Furthermore, the agreement stipulates that if the franchisee's lease terminates due to their own fault, Gold Star has the option to terminate the franchise agreement with written notice. This clause highlights the importance of maintaining a good relationship with the landlord and fulfilling lease obligations to avoid potential termination of the franchise agreement.