What happens if a Gold Star franchisee defaults after renewal?

According to the 2025 Gold Star Franchise Disclosure Document, if a franchisee defaults after renewing their franchise agreement, Gold Star has the right to rescind the renewal. To do so, Gold Star must notify the franchisee, adhering to any mandatory notice requirements dictated by the relevant Franchise Law.

This means that even after a Gold Star franchisee has successfully renewed their agreement for an additional term, they are not immune to the possibility of termination if they fail to uphold their obligations under the franchise agreement. The specific conditions that constitute a default are detailed elsewhere in the FDD, and franchisees should carefully review these to understand what actions could lead to a rescission of their renewed franchise.

The FDD also mentions that if the franchisee fails to meet all the conditions for renewal, it will be considered as an election by the franchisee to not renew the franchise agreement. Furthermore, if local franchise laws require Gold Star to provide notice of expiration or non-renewal, the agreement remains effective until such notice is given and the required time period has passed.

This clause underscores the importance of ongoing compliance for Gold Star franchisees, even after a renewal has been granted. Franchisees should maintain diligent adherence to the terms of the agreement to avoid the risk of losing their franchise, even after successfully navigating the renewal process.