factual

Does the Gold Star franchise agreement limit the company, its affiliates, or any other franchisee or licensee in soliciting or accepting orders from customers anywhere?

Gold_Star Franchise · 2025 FDD

Answer from 2025 FDD Document

Nothing herein shall limit the COMPANY, its affiliates or any other franchisee or licensee in soliciting or accepting orders from customers anywhere whether within or outside of the Protected Territory.

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 not limit Gold Star, its affiliates, or any other franchisee or licensee from soliciting or accepting orders from customers, whether within or outside of a franchisee's protected territory.

This means that while a franchisee is granted a protected territory, this protection does not extend to preventing Gold Star itself, its affiliates, or other franchisees from actively seeking business from customers, regardless of their location. This could include marketing efforts, online ordering systems, or other sales channels that reach customers within a franchisee's territory.

This provision highlights the non-exclusive nature of the franchise rights beyond the specific protected territory. A prospective franchisee should be aware that Gold Star and other franchisees can solicit and accept orders from customers anywhere, potentially creating competition within their own protected territory. This is a fairly common practice in franchising, as franchisors often want the flexibility to grow their brand through various channels without being restricted by territorial boundaries.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.