What must a Gold Star franchisee do if they learn of unauthorized use of Confidential Material?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE will advise the COMPANY promptly in writing if FRANCHISEE learns of any claims made relating to or unauthorized use of any Confidential Material whether by a Related Party or a third party.
The COMPANY is not obligated to take any action but may take any action it deems appropriate.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees have a responsibility to protect the company's confidential information. This includes information contained in the Manual, and other information about the Proprietary Products, the System and the Business, including customer and supplier lists. This information is considered proprietary and highly confidential trade secrets. Franchisees are only allowed to use this information as necessary for operating their Gold Star business according to the Franchise Agreement.
If a Gold Star franchisee becomes aware of any claims or unauthorized use of confidential material, whether by related parties or third parties, they must promptly advise Gold Star in writing. While Gold Star is not obligated to take any action, it reserves the right to take any action it deems appropriate to address the situation.
This requirement ensures that Gold Star can protect its trade secrets and proprietary information, which are crucial to maintaining its competitive advantage and brand integrity. By promptly reporting any unauthorized use, franchisees play a vital role in safeguarding the Gold Star system. This obligation is ongoing throughout the term of the Franchise Agreement.