What is the Gold Star franchisee's obligation regarding compliance with the Age Discrimination in Employment Act?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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, franchisees are responsible for complying with the Age Discrimination in Employment Act, as well as all other federal, state, and local laws and regulations. This obligation extends to all aspects of operating the Gold Star franchise. Gold Star franchisees must also obtain all necessary permits, certificates, registrations, and licenses needed for the construction, refurbishment, and operation of their store.
This means that franchisees must ensure their business practices, particularly in hiring, employment, and termination, adhere to these laws. The franchisee alone is responsible for compliance, and Gold Star has no obligation in this regard.
This requirement is typical in franchising, where franchisees are generally considered independent business owners responsible for their own legal compliance. Prospective Gold Star franchisees should consult with legal counsel to fully understand their obligations under the Age Discrimination in Employment Act and other relevant employment laws.