What happens if Gold Star decides to modify or discontinue the use of any of the Marks?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
NCHISEE's name or as the name of any entity directly or indirectly associated with FRANCHISEE's activities.
- 6.5 Prohibited Uses. FRANCHISEE shall not use the Marks in any manner which would disparage the COMPANY or its reputation, or take any action which would harm, jeopardize or compromise the Marks or the COMPANY's rights therein, in any way.
- 6.6 Modification, Discontinuation. If it becomes advisable at any time in the COMPANY's sole discretion for the COMPANY and/or FRANCHISEE to modify or discontinue use of any of the Marks, and/or to use one or more additional or substitute marks, names, logos or indicia, FRANCHISEE agrees to do so at its expense within a reasonable time after the COMPANY so instructs FRANCHISEE in writing.
- 6.7 Company Protection of Marks.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if Gold Star decides to modify or discontinue the use of any of its Marks, franchisees must comply. Specifically, if Gold Star determines it advisable to modify or discontinue the use of any Marks, or to use substitute marks, franchisees must do so at their own expense. This must be completed within a reasonable time frame after Gold Star provides written instructions.
This requirement means that franchisees bear the financial burden of rebranding or updating signage, menus, and other materials to reflect the changes directed by Gold Star. This could involve significant costs, especially if the changes are extensive or require immediate implementation. Franchisees need to be prepared for such potential expenses as part of their ongoing operational costs.
Furthermore, the FDD states that Gold Star will not be liable to the franchisee for any damages, costs, or expenses related to any action involving the Marks or associated goodwill, except as specifically outlined in Section 6.8 regarding notice of infringement. This includes any loss of profits, business opportunities, or incidental or consequential damages. Therefore, franchisees assume the risk of financial losses associated with changes to the Marks, highlighting the importance of maintaining a strong relationship with Gold Star and staying informed about potential brand modifications.
In summary, while Gold Star retains the right to modify or discontinue its Marks, franchisees are responsible for the costs associated with implementing these changes and bear the risk of potential financial losses resulting from such modifications. Prospective franchisees should carefully consider these factors and budget accordingly to mitigate potential financial impacts.