Is the Gold Star franchisee responsible for obtaining necessary permits and licenses?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.13 Compliance with Law.
FRANCHISEE shall promptly pay when due all taxes and assessments and all other indebtedness, liabilities and obligations of FRANCHISEE of every kind or character; shall comply with all federal, state and local laws and regulations (including, without limitation, the ADA, Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, and any other employment laws relating to the payment of employee-related taxes and withholdings, occupational hazards and health, dispensing of food products, consumer protection, trade regulation, employment discrimination and sexual harassment) and shall obtain in a timely manner any and all permits, certificates, registrations, or licenses necessary for the construction, refurbishing and full and proper operation of the Store.
FRANCHISEE agrees and acknowledges that FRANCHISEE alone will be responsible for compliance with the obligations under this Section, and that the COMPANY has no obligation with respect thereto.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the franchisee is responsible for obtaining all necessary permits, certificates, registrations, and licenses required for the construction, refurbishment, and operation of the store. This includes complying with all federal, state, and local laws and regulations. Gold Star franchisees must also ensure they pay all taxes, assessments, and other debts related to the business.
Prior to starting any construction, Gold Star franchisees must comply with all applicable laws, codes, and regulations, including ADA provisions. They are responsible for obtaining zoning classifications and clearances required by state or local laws. Franchisees must submit final construction plans to Gold Star for approval, but Gold Star's review is limited to compliance with the company's design standards and does not ensure compliance with laws and regulations, which remains the franchisee's responsibility.
Gold Star requires franchisees to certify in writing that all necessary permits and certifications have been obtained. Franchisees must also employ a qualified, licensed general contractor acceptable to Gold Star and maintain the required insurance during construction. Failing to obtain the necessary permits and licenses could result in legal issues, delays in opening, and potential fines or shutdowns, making it a critical responsibility for the franchisee.