factual

Does the Gold Star franchisee represent that they have made their own independent investigation?

Gold_Star Franchise · 2025 FDD

Answer from 2025 FDD Document

REPRESENTATIONS OF FRANCHISEE.** FRANCHISEE REPRESENTS THAT IT RECEIVED A FRANCHISE DISCLOSURE DOCUMENT FOR GOLD STAR CHILI FRANCHISES FOURTEEN (14) CALENDAR DAYS BEFORE THE EARLIER OF (A) EXECUTION OF THIS AGREEMENT (OR ANY OTHER AGREEMENT RELATING HERETO) AND (B) MAKING ANY PAYMENT TO THE COMPANY, THAT THE FRANCHISEE HAS READ THIS AGREEMENT, THE EXHIBITS AND THE COMPANY'S UNIFORM FRANCHISE DISCLOSURE DOCUMENT IN THEIR ENTIRETY, THAT IT HAS MADE ITS OWN INDEPENDENT INVESTIGATION OF

Source: Item 23 — Receipts (FDD pages 53–163)

What This Means (2025 FDD)

According to Gold Star's 2025 Franchise Disclosure Document, the franchisee represents that they have made their own independent investigation. Specifically, the franchisee acknowledges receiving the Franchise Disclosure Document at least 14 calendar days before signing any agreements or making payments to Gold Star. This 14-day period allows the franchisee time to thoroughly review the documents and seek professional advice.

Furthermore, the franchisee's representation includes an acknowledgment that they have read the franchise agreement, its exhibits, and the Franchise Disclosure Document in their entirety. This signifies that the franchisee is not only aware of the document's existence but has also taken the time to understand its contents. By signing the agreement, the franchisee confirms they have conducted their own due diligence and are entering into the franchise agreement with a full understanding of its terms and conditions.

This representation is a standard practice in franchising, intended to protect both the franchisor and the franchisee. It confirms that the franchisee is not relying solely on the franchisor's representations but has taken responsibility for evaluating the opportunity and assessing its suitability. This independent investigation typically involves reviewing the FDD, consulting with existing franchisees, and seeking advice from legal and financial professionals.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.