How should a Gold Star franchisee indicate the company's ownership of the Marks?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
ting within five (5) days after the commencement of any action, suit or proceeding, or of the issuance of any order, writ, injunction, aware or decree of any court or other governmental agency, relating to FRANCHISEE's compliance with health or safety standards at, or which may otherwise adversely affect the operation or financial condition of, the Store.
6. THE MARKS.
6.1 Ownership of Marks. FRANCHISEE shall use the Marks and the System only in connection with the Business and expressly agrees that any and all use of the Marks and the System by the FRANCHISEE, and all goodwill associated therewith, inures directly and exclusively to the benefit of the COMPANY. FRANCHISEE acknowledges that the COMPANY is the owner of the Marks and all goodwill associated therewith; valuable goodwill is associated with the Marks; and the Marks are valid. FRANCHISEE agrees not to contest or aid in contesting, directly or indirectly, the validity, ownership or enforceability of the Marks during and after the term of this Agreement or any extension or renewal thereof. Whenever FRANCHISEE uses the Marks, it will clearly indicate the COMPANY's ownership thereof. Apart from the non-exclusive right of FRANCHISEE to use the Marks pursuant to the terms of this Agreement, FRANCHISEE shall acquire no right, title or interest of any kind or nature whatsoever in or to the Marks and FRANCHISEE may not represent that it has
- any ownership of the Marks in advertising or otherwise. FRANCHISEE shall acquire no right, title or interest in or to the goodwill associated with the Marks.
- 6.2 Use of Marks. FRANCHISEE shall operate, advertise and promote the Business only under the Marks, and display and use the Marks, advertisements and other promotional materials provided, from time to time by the COMPANY to FRANCHISEE only in such form and manner as is specifically directed or approved in writing by the COMPANY. FRANCHISEE shall, upon request by the COMPANY, use any legends, markings and notices of registration of the Marks, or of the COMPANY-FRANCHISEE relationship as specified by the COMPANY. The COMPANY's written approval shall be required before any advertising, displays or other material using the Marks prepared by FRANCHISEE is used.
- 6.3 Conflicting Marks. FRANCHISEE shall not use any marks, signs, symbols, other indicia or identifying characteristics in connection with the Business other than the Marks, without the prior written consent of the COMPANY, which shall be in the COMPANY's sole discretion.
- 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.
- 6.5 Prohibited Uses. FRANCHISEE shall not use the Marks in any manner which would disparage the COMPANY or its reputation, or take any action which would harm, jeopardize or compromise the Marks or the COMPANY's rights therein, in any way.
- 6.6 Modification, Discontinuation.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, when a franchisee uses the company's Marks, they must clearly indicate Gold Star's ownership. The franchisee cannot represent that they have any ownership of the Marks in advertising or otherwise. The franchisee only has the non-exclusive right to use the Marks according to the franchise agreement terms and does not acquire any other right, title, or interest in the Marks or the associated goodwill.
Furthermore, the Gold Star franchisee must operate, advertise, and promote their business solely under the Marks. They are required to display and use the Marks, advertisements, and other promotional materials provided by Gold Star, adhering to the form and manner specifically directed or approved in writing by the company. Upon Gold Star's request, the franchisee must use any legends, markings, and notices of registration of the Marks, or of the company-franchisee relationship, as specified by Gold Star.
In addition to properly using the Marks, the franchisee will identify itself to the public as the owner of the store in at least one conspicuous location within the store and in any other documentation that Gold Star may reasonably specify. The franchisee is prohibited from using the Marks or the System to incur any obligation or indebtedness on behalf of Gold Star, or in connection with any activity that may harm, tarnish, or impair Gold Star's reputation, name, service, Marks, or System. Gold Star assumes no liability to the franchisee or any third party regarding the quality of any materials, supplies, food items, sauces, or services distributed or provided by the franchisee under the Gold Star Chili name or any other Mark. The franchisee is obligated to indemnify, hold harmless, and insure Gold Star against any liability, loss, or expense arising out of the franchisee's use of the Marks or the System.