Can the franchisee continue to use the Gold Star Marks after the termination of the agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1 De-Identification; Wind-Down of Business. Upon the termination or expiration of this Agreement, or upon the permanent closing or abandonment of the Store or the Business, the following provisions shall apply:
- 15.1.1 All rights, privileges and licenses granted by the COMPANY to FRANCHISEE will immediately cease, be null and void, and of no further force and effect, and all such privileges and licenses will immediately revert to the COMPANY.
- 15.1.2 FRANCHISEE shall immediately discontinue the use of the System and the Marks. All rights granted herein with respect to the Marks and System shall thereupon be deemed canceled and terminated.
- 15.1.3 Unless FRANCHISEE receives written notice of the COMPANY's exercise of its options set forth in Section 15.2 below, after thirty (30) days have elapsed since the effective date of termination, FRANCHISEE shall immediately remove the Marks from all buildings, signs, fixtures and furnishings, and within thirty (30) days' after written notice from the COMPANY, alter and paint all structures and other improvements maintained pursuant to this Agreement a design and color which is basically different from the COMPANY's authorized building design and painting schedule and otherwise assist COMPANY in every way possible to bring about a complete and effective wind-down and de-identification of the Business. If FRANCHISEE shall fail to make or cause to be made any such removal, alteration or repainting, then the COMPANY shall have the right to enter upon the Retail Location, without being deemed guilty of trespass or any other tort or civil wrong, and make or cause to be made such removal, alterations and repainting at the reasonable expense of FRANCHISEE, which expense FRANCHISEE shall pay the COMPANY upon demand. FRANCHISEE shall not be deemed to have waived any rights which FRANCHISEE may have under any Franchise Law by reason
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee cannot use Gold Star's marks after the termination or expiration of the franchise agreement. Upon termination or expiration, all rights and licenses granted to the franchisee by Gold Star immediately cease. The franchisee must immediately discontinue the use of the Gold Star system and marks. All rights granted with respect to the marks and system are canceled and terminated.
After termination, the franchisee has 30 days to remove the Gold Star marks from all buildings, signs, fixtures, and furnishings. If Gold Star provides written notice, the franchisee must alter and repaint all structures and improvements to a design and color different from Gold Star's authorized building design and painting schedule within 30 days of the notice. This ensures a complete de-identification of the business. If the franchisee fails to do so, Gold Star has the right to enter the retail location and make the necessary changes at the franchisee's expense.
Gold Star's franchise agreement emphasizes that the franchisee gains no ownership rights to the marks or the associated goodwill. The franchisee can only use the marks in connection with the Gold Star business and any goodwill generated from that use benefits Gold Star exclusively. This reinforces the importance of adhering to the termination requirements to protect Gold Star's brand identity and prevent any potential confusion in the marketplace after the franchise agreement ends.