What must the FRANCHISEE obtain from Gold Star for any Lease, sublease, or contract of tenancy for the Retail Location?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.3 Approval of Lease. If FRANCHISEE intends to occupy the Retail Location under a lease, sublease, or other contract of tenancy (collectively, the "Lease"), any such Lease (and any amendment, renewal or extension thereof) must be approved by the COMPANY prior to its execution. The COMPANY's approval of the Lease may be conditioned upon the inclusion of such provisions as the COMPANY reasonably requires, including without limitation, those provisions set forth on Exhibit B attached hereto.
- 4.4 Use of Leasing Counsel. The COMPANY may, at its discretion, at any time prior to its approval of the Lease, require FRANCHISEE to engage attorneys of the COMPANY's choosing to advise FRANCHISEE and negotiate the terms of the Lease. The expenses of such leasing attorneys shall be the sole responsibility of FRANCHISEE.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if a franchisee intends to occupy their retail location under a lease, sublease, or other contract of tenancy, they must obtain Gold Star's approval before executing the lease. This approval extends to any amendments, renewals, or extensions of the lease. Gold Star may condition its approval on specific provisions being included in the lease, as detailed in Exhibit B of the Franchise Agreement.
Gold Star may also require the franchisee to use attorneys of Gold Star's choosing to advise and negotiate the lease terms. The franchisee is responsible for covering the expenses of these attorneys. This requirement can be imposed at any time before Gold Star approves the lease.
These stipulations ensure that Gold Star maintains control over the locations of its franchises and that the lease terms align with its interests. The provisions in Exhibit B, which Gold Star may require, likely cover aspects such as the use of the premises, the company's right to enter the location, termination clauses, and the company's right to assume the lease. This level of oversight is common in franchising to protect the brand and ensure consistency across all locations.