Where was the Gold Star franchise operated by 21 Partners Group LLC located?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
igation**
Pending Item:
Gold Star Chili, Inc. and GSC Properties, LLC v. 21 Partners Group LLC and Rasem Daoud. Gold Star and GSC Properties filed a complaint against 21 Partners Group LLC, an existing franchisee, and Rasem Daoud, its owner, on June 14, 2024. On June 9, 2017, the
defendants executed a Lease Agreement with GSC Properties and a Franchise Agreement with Gold Star pursuant to which defendants operated a franchise (the "Hartwell Gold Star") at 21 East Galbraith Road, Cincinnati, Ohio 45216 (the "Property").
On October 9, 2021, there was a fire at the Property that resulted in a total loss of the Hartwell Gold Star. After the fire, the defendants ceased operating, never rebuilt, and retained insurance proceeds which were to be used to rebuild, the Hartwell Gold Star. Defendant 21 Partners was issued a check for $157,990.41 for replacement of furniture, fixtures, and equipment, but never provided Gold Star with these proceeds, despite having a contractual obligation to do so. Defendant 21 Partners provided Gold Star with building replacement insurance proceeds totaling $455,642.92, but the total cost for restoration is $1,106,670.00, a cost for which defendants are responsible.
Source: Item 3 — Litigation (FDD pages 10–11)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, 21 Partners Group LLC operated a Gold Star franchise at 21 East Galbraith Road, Cincinnati, Ohio 45216. This franchise was referred to as the "Hartwell Gold Star".
The document indicates that 21 Partners Group LLC entered into a Lease Agreement with GSC Properties and a Franchise Agreement with Gold Star on June 9, 2017, to operate the Hartwell Gold Star franchise at the specified location. However, the franchise ceased operations after a fire occurred at the property on October 9, 2021, resulting in a total loss. The franchisee, 21 Partners Group LLC, did not rebuild the franchise after the fire.
The FDD also mentions that Gold Star initiated a lawsuit against 21 Partners Group LLC and its owner, Rasem Daoud, on June 14, 2024, due to issues related to insurance proceeds that were intended for rebuilding the Hartwell Gold Star. This legal action highlights the importance of franchisees adhering to their contractual obligations regarding insurance proceeds and property restoration after unforeseen events like a fire.