What is the Gold Star franchisee's obligation regarding compliance with laws related to consumer protection?
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 must comply with all federal, state, and local laws and regulations. This includes, but is not limited to, laws concerning consumer protection. The franchisee is also responsible for obtaining all necessary permits, certificates, registrations, or licenses required for the construction, refurbishment, and operation of the store.
Gold Star franchisees are solely responsible for adhering to these legal obligations. Gold Star itself has no obligation in this regard. This means franchisees must stay informed about relevant consumer protection laws and ensure their business practices align with these regulations.
This requirement extends to various aspects of the business, including the dispensing of food products. Franchisees must ensure they are up-to-date with all applicable laws and regulations to avoid potential legal issues and maintain the integrity of the Gold Star brand. Failing to comply with these laws could result in penalties, legal action, and damage to the franchisee's and Gold Star's reputation.