In the Gold Star Franchise Agreement, what section addresses the Franchisee's failure to cooperate?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.10 Franchisee's Failure to Cooperate.
Section 6.7 notwithstanding, if FRANCHISEE fails to meet its obligations under Sections 6.8 and 6.9 with respect to any particular event, the COMPANY's warranties and obligations under Sections 6.7 and 6.8 shall become void with respect to such particular event, and the COMPANY shall have no liability for costs incurred or damages awarded against FRANCHISEE. EXCEPT AS SPECIFICALLY SET FORTH IN SECTION 6.8, ABOVE, THE COMPANY SHALL NOT BE LIABLE TO FRANCHISEE FOR ANY DAMAGES, COSTS, OR EXPENSES WHATSOEVER, INCLUDING BUT NOT LIMITED TO, ANY LOSS OF PROFITS OR BUSINESS OPPORTUNITIES, OR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER RELATING TO ANY ACTION OR OTHER MATTER INVOLVING THE MARKS OR GOODWILL ASSOCIATED THEREWITH.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Section 6.10 of the Franchise Agreement addresses the franchisee's failure to cooperate.
Specifically, if a Gold Star franchisee fails to meet its obligations under Sections 6.8 and 6.9 with respect to any particular event, Gold Star's warranties and obligations under Sections 6.7 and 6.8 become void for that event. This means that Gold Star will not be liable for any costs incurred or damages awarded against the franchisee in such cases.
Furthermore, except as specifically outlined in Section 6.8, Gold Star is not liable to the franchisee for any damages, costs, or expenses. This includes any loss of profits or business opportunities, or any incidental or consequential damages related to any action or matter involving the marks or goodwill associated with Gold Star.