What is the Gold Star franchisee's obligation regarding the Retail Location lease term?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
s, and, within six (6) months of the date hereof, obtain the COMPANY's written approval of the site of a Retail Location and any lease therefor. The COMPANY may require FRANCHISEE to use a master broker and/or local broker approved by or designated by the COMPANY in connection with the selection of a Retail Location.
- 4.3 Approval of Lease. If FRANCHISEE intends to occupy the Retail Location under a lease, sublease, or other contract of tenancy (collectively, the "Lease"), any such Lease (and any amendment, renewal or extension thereof) must be approved by the COMPANY prior to its execution. The COMPANY's approval of the Lease may be conditioned upon the inclusion of such provisions as the COMPANY reasonably requires, including without limitation, those provisions set forth on Exhibit B attached hereto.
- 4.4 Use of Leasing Counsel. The COMPANY may, at its discretion, at any time prior to its approval of the Lease, require FRANCHISEE to engage attorneys of the COMPANY's choosing to advise FRANCHISEE and negotiate the terms of the Lease. The expenses of such leasing attorneys shall be the sole responsibility of FRANCHISEE.
- 4.5 Standard Plans. The COMPANY will provide to FRANCHISEE's architect (such architect to be reasonably acceptable to the COMPANY), at no charge to the FRANCHISEE, standard plans and specifications for the design and configuration of a prototype Restaurant, including exterior and interior design and layout, fixtures, furnishings, equipment and signs. The prototype plans will not
address the requirements of any federal, state or local law, code or regulation (including those concerning the Americans with Disabilities Act (the "ADA") or similar rules for the accommodation of persons with disabilities), nor will the plans contain the requirements of, or be used for, construction drawings or other documentation necessary to obtain permits or authorizations to build a specific Restaurant. The FRANCHISEE will adapt, at FRANCHISEE's expense, the prototype plans and specifications to the Retail Location, subject to the COMPANY's approval. The COMPANY may require FRANCHISEE to use a civil engineer approved by or designated by the COMPANY in connection with the design of the Restaurant.
- 4.6 Equipment, Vendor Lists. The COMPANY will additionally provide, at no cost to the FRANCHISEE:
- 4.6.1 a schedule of all equipment necessary to operate the Store;
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, if a franchisee intends to occupy the Retail Location under a lease, that lease must be approved by Gold Star before it is executed. Gold Star's approval may depend on specific provisions they require to be included in the lease. These provisions are detailed in Exhibit B of the Franchise Agreement.
Exhibit B outlines several lease provisions that Gold Star may require. These include restricting the use of the premises solely to the operation of the franchised business, allowing Gold Star to enter the Retail Location to de-identify the business without penalty, and requiring the landlord to provide Gold Star with advanced notice of any contemplated termination. The exhibit also states that Gold Star has the right to assume the franchisee's leasehold interest upon termination or expiration of the lease or the Franchise Agreement, and that the lease term should be coterminous with the Franchise Agreement.
Furthermore, the lease cannot be modified in a way that could materially affect Gold Star's rights without their prior written consent. Gold Star may also require the franchisee to engage attorneys of Gold Star's choosing to advise and negotiate the lease terms, with the franchisee bearing the expenses for these attorneys. These stipulations ensure that Gold Star maintains control over the Retail Location and can protect its interests in the event of lease termination or other issues.