Is a Gold Star franchisee allowed to register any variation of the Marks as a trademark?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.4 No Use of Marks in Franchisee Name.
During and after the term of this Agreement or any extension or renewal thereof, FRANCHISEE shall not use or register, in whole or in part, the Marks, any variation, abbreviation or formative thereof, or any words, symbols or designs which are confusingly similar thereto, as a trademark, as a service mark, as a trade name, as part of FRANCHISEE's name or as the name of any entity directly or indirectly associated with FRANCHISEE's activities.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, franchisees are explicitly prohibited from registering any variations of Gold Star's trademarks. This restriction extends to using the Marks, or any confusingly similar words, symbols, or designs, as a trademark, service mark, trade name, or part of the franchisee's name, or the name of any entity associated with the franchisee's activities. This restriction applies both during and after the franchise agreement term.
This restriction is typical in franchising, as the franchisor needs to maintain tight control over its brand and image. Allowing franchisees to register similar trademarks could create confusion among consumers and weaken the franchisor's brand. Gold Star retains the right to modify or discontinue the use of any Marks, and franchisees are obligated to comply with these changes at their own expense.
Gold Star also warrants that it has the rights to license the Marks to franchisees and that this use will not infringe on the rights of others. Gold Star agrees to take necessary actions to protect the Marks and associated goodwill. Franchisees are required to notify Gold Star of any potential infringements or claims involving the Marks. This coordinated approach ensures brand consistency and legal protection for the entire Gold Star franchise system.