What is the Gold Star franchisee's obligation regarding compliance with laws related to dispensing of food products?
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 the 2025 Gold Star Franchise Disclosure Document, franchisees must comply with all federal, state, and local laws and regulations, including those related to the dispensing of food products. This obligation falls solely on the franchisee, and Gold Star has no responsibility in this area.
This means that a prospective Gold Star franchisee must ensure their restaurant adheres to all relevant food safety and handling laws. This includes obtaining all necessary permits, certificates, registrations, and licenses required for the proper operation of the store. These can include food handler permits, health inspections, and other local requirements.
The franchisee is responsible for staying informed about any changes to these laws and regulations and for implementing practices to ensure ongoing compliance. Failure to comply with these laws can result in fines, penalties, and even the closure of the restaurant. Gold Star franchisees should consult with legal and food safety professionals to ensure they fully understand and meet all applicable requirements.