What happens if I fail to make the goods available to Gold Star after canceling the agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 26. SURVIVAL OF TERMS AND CONDITIONS. The obligations of FRANCHISEE under Sections 11, 12, 16, and 19.3 hereof, and any other FRANCHISEE obligations herein that are stated to, or are of a type that would reasonably, survive or apply beyond termination or expiration of this Agreement, shall survive any termination or expiration of this Agreement; and expiration or termination of this Agreement shall be without prejudice to the rights of the COMPANY against FRANCHISEE thereunder and with respect to other like matters that reasonably would survive the end of a franchise relationship, and shall not relieve FRANCHISEE of any of FRANCHISEE's obligations to the COMPANY existing at the time of expiration or termination.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
I am unable to provide information on what happens if you fail to make goods available to Gold Star after canceling the agreement, as this specific scenario is not addressed within the provided excerpts from the 2025 Franchise Disclosure Document.
However, the FDD does include information on the franchisee's obligations that survive the termination or expiration of the agreement. Section 26 states that obligations under Sections 11, 12, 16, and 19.3, and any other obligations that would reasonably survive termination, will remain in effect. Additionally, termination does not prejudice Gold Star's rights against the franchisee for matters that would reasonably survive the franchise relationship, nor does it relieve the franchisee of obligations existing at the time of termination.
To fully understand the implications of failing to make goods available post-cancellation, it is recommended that a prospective Gold Star franchisee ask the franchisor for clarification on this specific scenario. Further, it would be prudent to seek legal counsel to review the franchise agreement and ensure a comprehensive understanding of all post-termination obligations and potential liabilities.