Does the Gold Star franchise agreement grant the franchisee the right to sublicense?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
ge thereof (the "Retail Location"), and for the right to use, solely in connection therewith the System and Marks.
NOW, THEREFORE, in consideration of the above premises and the mutual covenants herein contained, the parties agree as follows:
1. GRANT OF FRANCHISE.
1.1 Grant. COMPANY hereby grants unto FRANCHISEE, and FRANCHISEE hereby accepts, upon the terms and conditions of this Agreement, a license and franchise to establish and operate a Restaurant at the Retail Location (sometimes
herein referred to as the "Restaurant" or the "Store" and the business conducted pursuant to this Agreement is sometimes her
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, the franchise agreement does not grant franchisees the right to sublicense. The agreement explicitly states that the franchise is granted for operation at a specific retail location, and the franchisee has no right to sublicense the rights granted in the agreement. This means a Gold Star franchisee cannot authorize another party to operate the franchise on their behalf.
This restriction is typical in franchising, as franchisors like Gold Star want to maintain control over their brand standards and ensure consistent operation across all locations. Allowing franchisees to sublicense could dilute the brand and make it difficult for the franchisor to enforce quality control.
Prospective Gold Star franchisees should understand that they will be directly responsible for the operation of their franchise and cannot delegate this responsibility to another party through a sublicense. This requirement ensures that the franchisee is actively involved in the business and committed to upholding Gold Star's standards.