What is the Gold Star franchisee's obligation regarding compliance with employment laws related to employee-related taxes and withholdings?
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 all federal, state, and local laws and regulations, including employment laws related to employee-related taxes and withholdings. This encompasses laws like the ADA, Title VII of the Civil Rights Act, and the Age Discrimination in Employment Act. Franchisees must also handle occupational hazards and health, food product dispensing, consumer protection, trade regulation, employment discrimination, and sexual harassment laws.
This means that a prospective Gold Star franchisee must ensure they understand and adhere to all relevant employment laws. This includes accurately calculating, withholding, and remitting employee-related taxes to the appropriate government agencies. It also involves maintaining a safe and respectful workplace that complies with anti-discrimination and harassment laws.
Gold Star franchisees are solely responsible for compliance, and Gold Star has no obligation in this area. Franchisees must also obtain all necessary permits, certificates, registrations, or licenses for construction, refurbishment, and store operation. Therefore, it is crucial for franchisees to seek legal and professional advice to ensure they meet all legal requirements and avoid potential penalties or liabilities.