Can a Gold Star franchisee use the Marks as part of their name?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.4 No Use of Marks in Franchisee Name.
During and after the term of this Agreement or any extension 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.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from using Gold Star's trademarks (the "Marks") as part of their own name or the name of any entity associated with their activities, both during and after the franchise agreement term. This restriction extends to any variation, abbreviation, or similar design that could be confusingly associated with Gold Star. This policy ensures that the Gold Star brand remains distinct and under the control of the company, preventing any potential confusion or misuse of the brand's identity.
This restriction is a standard practice in franchising, as franchisors need to protect their brand identity and goodwill. Allowing franchisees to incorporate the brand's trademarks into their business names could dilute the brand and create legal complications. Gold Star maintains sole discretion over the use and modification of its Marks, and franchisees must adhere to any changes or discontinuation of Marks as instructed by the company. Franchisees are also required to report any potential infringements of the Marks to Gold Star.
Gold Star also retains the right to take legal action against infringements of its Marks, and may choose to defend the franchisee in case of legal action challenging the franchisee's right to use the Marks. Franchisees are obligated to cooperate with Gold Star in any such legal matters. While franchisees can retain their own legal counsel, Gold Star will not be responsible for those costs. Franchisees are required to identify themselves as the owner of the store in a conspicuous location and must not use the Marks in any way that could harm Gold Star's reputation.