What is the Gold Star franchisee's obligation regarding displaying the independent ownership statement on printed materials?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE WILL DISPLAY PROMINENTLY AT ITS PLACE OF BUSINESS, ON ALL CORRESPONDENCE WITH THIRD PARTIES, AND IN ANY PRINTED MATERIALS BEARING ITS NAME OR BUSINESS LOCATION, A STATEMENT THAT THE STORE IS INDEPENDENTLY OWNED AND OPERATED BY FRANCHISEE.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are required to prominently display a statement indicating that their store is independently owned and operated. This statement must be included at the place of business, on all correspondence with third parties, and in any printed materials that bear the franchisee's name or business location.
This requirement ensures that customers and other parties are aware that the Gold Star location is owned and operated by an independent franchisee, not directly by the Gold Star corporate entity. This distinction is important for liability and customer service expectations.
By clearly stating the independent ownership, Gold Star aims to avoid any confusion about who is responsible for the store's operations and any related issues. This also protects Gold Star from potential liabilities arising from the franchisee's actions. Franchisees must ensure that all printed materials, such as menus, flyers, and business cards, include this statement to comply with the franchise agreement.