What happens if Gold Star discovers that a franchisee made material misrepresentations or omissions during the franchise application process?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
14.4.12 The COMPANY discovers that FRANCHISEE has made any material misrepresentations or omitted any material fact in the information furnished by FRANCHISEE in connection with the grant of this franchise; or
14.5 Termination after Opportunity to Cure.
This Agreement (except as otherwise provided in Section 26, below) and all rights granted FRANCHISEE hereunder will terminate upon the occurrence of any of the following events unless cured to
the satisfaction of the COMPANY within ten (10) days (or such shorter or longer time if specified) after the COMPANY's written notice of such default to FRANCHISEE (FRANCHISEE must provide evidence of such cure to the COMPANY). If any such default is not so cured within that period, the COMPANY may, at its option, terminate this Agreement by written notice of termination, and all rights of FRANCHISEE hereunder shall thereupon terminate.
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 discovers that a franchisee provided any material misrepresentations or omitted any material fact during the franchise application process, it constitutes a cause for termination of the franchise agreement.
Specifically, this is listed as one of the conditions that can lead to the termination of the agreement. Gold Star will provide written notice of the default, and the franchisee typically has ten days to resolve the issue to Gold Star's satisfaction.
If the franchisee fails to correct the misrepresentation or omission within the given timeframe, Gold Star has the option to terminate the franchise agreement by providing written notice. Upon termination, all rights granted to the franchisee under the agreement will cease.