Is a Gold Star franchisee responsible for paying all taxes and assessments related to the franchise?
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 paying all taxes and assessments related to the franchise. The franchisee must promptly pay when due all taxes, assessments, indebtedness, liabilities, and obligations. This includes compliance with all federal, state, and local laws and regulations.
This requirement extends to various aspects of operating the Gold Star franchise, including adherence to laws like the ADA, Title VII of the Civil Rights Act, and the Age Discrimination in Employment Act. It also encompasses employment laws related to employee-related taxes, withholdings, occupational hazards, health standards, dispensing of food products, consumer protection, trade regulation, employment discrimination, and sexual harassment.
Furthermore, the franchisee is responsible for obtaining all necessary permits, certificates, registrations, or licenses required for the construction, refurbishing, and proper operation of the Gold Star store. Gold Star explicitly states that the franchisee alone is responsible for compliance with these obligations, and Gold Star itself has no obligation in this regard. This places the onus on the franchisee to ensure they are fully compliant with all applicable laws and regulations, as well as responsible for all associated payments.