When must a Gold Star franchisee furnish the company with a certified list of all its Principals?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- **17.
PARTNERSHIP AND CORPORATE FRANCHISEES.** If FRANCHISEE, or any successor thereof, is a partnership, limited liability company or corporation:
- 17.1 Duty to Inform Company.
Upon the execution of this Agreement and upon each Transfer of an interest in this Agreement or in FRANCHISEE and at any other time upon the COMPANY's request, FRANCHISEE shall furnish the COMPANY with a certified list of all its Principals, showing the percentage interest of each, and a list of all officers, managers and directors.
A copy of the Certified Listing of all Partners/Members/Shareholders/Other Holders form to be used for this purpose is attached to this Agreement as Exhibit D.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee must furnish the company with a certified list of all its Principals under specific circumstances. These instances include upon the execution of the Franchise Agreement, upon each Transfer of an interest in the Agreement or in the franchisee entity, and at any other time upon Gold Star's request. This list must show the percentage interest of each Principal, along with a list of all officers, managers, and directors.
This requirement ensures that Gold Star maintains an updated record of the ownership and management structure of each franchise. The company uses a specific form, attached as Exhibit D to the Franchise Agreement, for this purpose.
This obligation applies if the franchisee is a partnership, limited liability company, or corporation. By requiring this information, Gold Star aims to control who is involved in the franchise and ensure compliance with the franchise agreement, particularly regarding transfers of ownership and management responsibilities. This is a fairly standard practice in franchising, as franchisors typically want to know and approve who is operating under their brand name.