Where in the Gold Star Franchise Agreement can I find information about Gold Star's approval of transfer by the franchisee?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| l. Gold Star’s approval of transfer by Franchisee | Section 13.4 and the Small Business Association Addendum if applicable | Gold Star has the right to approve all transfers (also see (n) below) |
| m. Conditions for Gold Star approval of transfer | Section 13.4 and the Small Business Association Addendum if applicable | Gold Star not obligated to approve any transfer--minimum conditions include: you are in good standing; new franchisee qualifies; transfer fee paid; purchase agreement approved; training arranged; release signed by you (and your shareholders and partners) and current agreement and related documents signed by new franchisee (also see (n) and (r), below); Under the Small Business Association Addendum, Gold Star may not unreasonably withhold, condition, or delay its consent. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 42–45)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Item 17 outlines the provisions regarding the transfer of a franchise. Specifically, Section 13.4 of the Franchise Agreement, along with the Small Business Association Addendum if applicable, contains information about Gold Star's approval of a transfer by the franchisee. This section details that Gold Star has the right to approve all transfers.
Section 13.4 and the Small Business Association Addendum also outline the conditions for Gold Star's approval of a transfer. These conditions include that the franchisee must be in good standing, the new franchisee must qualify, a transfer fee must be paid, the purchase agreement must be approved, training must be arranged, and a release must be signed by the current franchisee (and their shareholders and partners). The new franchisee must also sign the current agreement and related documents.
It's important to note that Gold Star is not obligated to approve any transfer, but under the Small Business Association Addendum, Gold Star may not unreasonably withhold, condition, or delay its consent. Prospective franchisees should carefully review Section 13.4 and the Small Business Association Addendum to fully understand the requirements and conditions for transferring their Gold Star franchise.