Can a Gold Star franchisee use the Marks in a way that disparages the company?

According to Gold Star's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from using the Marks in any way that disparages the company or its reputation. This restriction is in place to protect the brand's image and goodwill. Franchisees must also avoid any actions that could harm, jeopardize, or compromise the Marks or Gold Star's rights to them. This is a standard clause in most franchise agreements, ensuring brand consistency and preventing damage to the franchisor's reputation.

Gold Star also retains the right to modify or discontinue the use of any Marks at its sole discretion. If Gold Star instructs a franchisee to change or stop using certain Marks, the franchisee must comply at their own expense within a reasonable timeframe. Furthermore, franchisees cannot use the Marks or the Gold Star system to incur debt on behalf of the company or engage in activities that could harm the company's reputation, name, service, Marks, or system.

Gold Star assumes no liability to the franchisee or any third party regarding the quality of materials, supplies, food items, sauces, services, or any other items provided or promoted by Gold Star and distributed by the franchisee under the Gold Star Chili name or any other Mark. The franchisee is responsible for indemnifying, holding harmless, and insuring Gold Star against any liability, loss, or expense arising from the franchisee's use of the Marks or the system. This underscores the importance of franchisees maintaining quality and adhering to brand standards to avoid potential legal or financial repercussions.