Is a Gold Star franchisee permitted to use the Gold Star Marks in any way that would disparage the company or its reputation?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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. If it becomes advisable at any time in the COMPANY's sole discretion for the COMPANY and/or FRANCHISEE to modify or discontinue use of any of the Marks, and/or to use one or more additional or substitute marks, names, logos or indicia, FRANCHISEE agrees to do so at its expense within a reasonable time after the COMPANY so instructs FRANCHISEE in writing.
- 6.7 Company Protection of Marks.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from using the Gold Star Marks in any manner that would disparage the company or its reputation. This restriction is in place to protect the brand's image and goodwill. Franchisees must also avoid any actions that could harm, jeopardize, or compromise the Marks or Gold Star's rights related to them. This includes any activity that may harm, tarnish or impair the company's reputation, name, service, Marks or System.
Gold Star retains the right to modify or discontinue the use of any Marks, and franchisees must comply with these changes at their own expense within a reasonable time frame after receiving written instructions from Gold Star. Franchisees are also required to identify themselves as the owner of their store in a conspicuous location and in any documentation specified by Gold Star. This ensures transparency and avoids any confusion about the store's ownership.
These stipulations are typical in franchise agreements, as franchisors need to maintain tight control over their brand to ensure consistency and protect their reputation. By preventing franchisees from using the Marks in a disparaging way, Gold Star aims to uphold its brand standards and protect the overall value of the franchise system. Franchisees should be aware of these restrictions and ensure that all their marketing and operational activities align with Gold Star's guidelines.