Does the Gold Star franchise agreement confer any rights to third parties?

According to the 2025 Gold Star Franchise Disclosure Document, the franchise agreement does not confer any rights or remedies to third parties. The agreement explicitly states that it is not intended to benefit any person, firm, or corporation other than the parties directly involved in the agreement. This means that only Gold Star and the franchisee have rights and obligations under the agreement.

This provision protects Gold Star from claims by individuals or entities who might argue they are entitled to benefits or recourse under the franchise agreement. For example, suppliers, customers, or employees of the franchisee cannot claim any rights under the agreement. This is a standard clause in franchise agreements to limit liability and ensure that only the franchisee and franchisor can enforce the terms of the agreement.

However, Exhibit C to the Franchise Agreement, the Personal Guaranty, does create obligations for a third party. Under the Personal Guaranty, an individual (typically a principal of the franchisee entity) guarantees the franchisee's obligations to Gold Star. This means that if the franchisee fails to meet its financial or other obligations, Gold Star can seek recourse directly from the guarantor. While the franchise agreement itself does not confer rights to third parties, related documents like the Personal Guaranty can create legally binding obligations for them.