Does the Gold Star franchise agreement include a waiver of jury trial?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- **22.4 Waiver of Jury Trial.
EACH PARTY IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER PARTY.**
- 22.5 No Special Damages.
The parties agree to waive, to the fullest extent permitted by law, the right to or claim of any multiple, punitive, or exemplary damages against the other and agree that, in the event of a dispute between them, each will be limited to the recovery of actual damages sustained by it.
- 22.6 Limitation of Claims.
Except for: (i) claims against FRANCHISEE concerning the underreporting of Gross Sales and corresponding underpayment of continuing franchise and Brand Building Fees, (ii) claims against FRANCHISEE by The COMPANY relating to third party claims or suits brought against The COMPANY as a result FRANCHISEE's operation of the Store, (iii) claims for injunctive relief to enforce the provisions of this Agreement relating to FRANCHISEE's use of the Marks, (iv) claims against FRANCHISEE by The COMPANY for injunctive relief relating to FRANCHISEE's financial obligations upon the termination or expiration of this Agreement, (v) claims against FRANCHISEE by The COMPANY concerning FRANCHISEE's obligations under Articles 11 or 12 of this Agreement, and (vi) claims against FRANCHISEE by The COMPANY regarding an assignment of this Agreement or any ownership interests therein, any and all claims arising out of or relating to this Agreement or the relationship between the parties will be barred unless an action is commenced within one year from the date FRANCHISEE or The COMPANY knew or should have known of the facts giving rise to such claims.
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 includes a waiver of jury trial. Specifically, both Gold Star and the franchisee irrevocably waive their rights to a jury trial in any legal action related to the franchise agreement. This means that any disputes arising between Gold Star and the franchisee will be resolved by a judge rather than a jury.
This waiver has significant implications for prospective franchisees. Jury trials can be more unpredictable and potentially lead to larger damage awards. By agreeing to a jury trial waiver, franchisees give up the right to have their case decided by a jury of their peers. Instead, a judge will make the final decision, which could be more predictable but also potentially less sympathetic to the franchisee's perspective. Franchisees should consider this carefully and consult with an attorney to understand the potential impact of this waiver on their legal rights.
In addition to waiving the right to a jury trial, the Gold Star franchise agreement also includes clauses regarding special damages and limitation of claims. The parties agree to waive the right to any multiple, punitive, or exemplary damages, limiting recovery to actual damages sustained. Furthermore, any claims arising out of the agreement must be commenced within one year from the date the party knew or should have known of the facts giving rise to such claims, with certain exceptions such as underreporting of gross sales or claims for injunctive relief.