factual

Can a Gold Star franchisee take any action that would jeopardize the Marks?

Gold_Star Franchise · 2025 FDD

Answer 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. The COMPANY warrants and represents that it has such rights in and to the Marks so as to enable it to license FRANCHISEE's use of them in accordance with the terms of this Agreement and that such use will not infringe the legal or equitable rights of any persons, partnerships, limited liability companies or corporations. The COMPANY agrees to take whatever actions it deems reasonably necessary to protect the Marks and the goodwill associated therewith. The COMPANY retains the exclusive right, in its sole discretion exercised in good faith, to determine and undertake such actions, if any,

  • as it deems appropriate to prevent the infringement of the Marks or the diminution of the goodwill in the Marks.
  • 6.8 Notice of Infringement.

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

What This Means (2025 FDD)

According to Gold Star's 2025 Franchise Disclosure Document, a franchisee is prohibited from taking any action that could harm or compromise the Marks (trademarks, service marks, trade names, etc.) or Gold Star's rights to them. The franchisee cannot use the Marks in any way that disparages Gold Star's reputation.

Gold Star retains the exclusive right to take actions it deems necessary to protect the Marks and associated goodwill. If it becomes advisable to modify or discontinue the use of any Marks, the franchisee must comply with Gold Star's instructions at their own expense.

The franchisee must promptly notify Gold Star of any potential infringement of the Marks by others. The franchisee is also required to identify themselves as the owner of the store to the public and cannot use the Marks to incur any obligations on behalf of Gold Star. The franchisee is responsible for indemnifying Gold Star against any liability arising from the franchisee's use of the Marks or the System.

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.