What is a Gold Star franchisee prohibited from using after termination or expiration of the franchise agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
15. RIGHTS AND OBLIGATIONS OF PARTIES ON TERMINATION OR EXPIRATION.
- 15.1 De-Identification; Wind-Down of Business. Upon the termination or expiration of this Agreement, or upon the permanent closing or abandonment of the Store or the Business, the following provisions shall apply:
- 15.1.1 All rights, privileges and licenses granted by the COMPANY to FRANCHISEE will immediately cease, be null and void, and of no further force and effect, and all such privileges and licenses will immediately revert to the COMPANY.
- 15.1.2 FRANCHISEE shall immediately discontinue the use of the System and the Marks. All rights granted herein with respect to the Marks and System shall thereupon be deemed canceled and terminated.
- 15.1.3 Unless FRANCHISEE receives written notice of the COMPANY's exercise of its options set forth in Section 15.2 below, after thirty (30) days have elapsed since the effective date of termination, FRANCHISEE shall immediately remove the Marks from all buildings, signs, fixtures and furnishings, and within thirty (30) days' after written notice from the COMPANY, alter and paint all structures and other improvements maintained pursuant to this Agreement a design and color which is basically different from the COMPANY's authorized building design and painting schedule and otherwise assist COMPANY in every way possible to bring about a complete and effective wind-down and de-identification of the Business. If FRANCHISEE shall fail to make or cause to be made any such removal, alteration or repainting, then the COMPANY shall have the right to enter upon the Retail Location, without being deemed guilty of trespass or any other tort or civil wrong, and make or cause to be made such removal, alterations and repainting at the reasonable expense of FRANCHISEE, which expense FRANCHISEE shall pay the COMPANY upon demand. FRANCHISEE shall not be deemed to have waived any rights which FRANCHISEE may have under any Franchise Law by reason
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must immediately discontinue using the Gold Star System and Marks. All rights granted to the franchisee regarding the Marks and System are immediately canceled and terminated.
Specifically, the franchisee is required to remove the Marks from all buildings, signs, fixtures, and furnishings within thirty days after the termination date, unless Gold Star provides written notice exercising its options. Additionally, the franchisee must alter and repaint all structures and improvements to a design and color that differs significantly from Gold Star's authorized building design and painting schedule within thirty days of receiving written notice from Gold Star. This ensures a complete de-identification of the business.
If the franchisee fails to comply with these de-identification requirements, Gold Star has the right to enter the retail location and perform the necessary removals, alterations, and repainting at the franchisee's expense. The franchisee is responsible for paying these expenses to Gold Star upon demand. This clause emphasizes the importance of a clean break between the franchisee and the Gold Star brand to protect the integrity of the brand and prevent customer confusion after a franchise agreement ends.