What happens to Gold Star's responsibilities after assigning the Franchise Agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
ood moral character and reputation, satisfactory credit ratings, acceptable business qualifications, satisfactory completion of training programs, and the ability to comply fully with the terms of the then-current franchise agreement;
- 13.4.4 The transferee will enter into a written assumption, in a form satisfactory to the COMPANY, assuming and agreeing to discharge all of
- FRANCHISEE's obligations under this Agreement prior to and after the date of assumption;
- 13.4.5 The transferee shall have paid the COMPANY its then-current transfer fee. The
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpt provided does not specify what happens to Gold Star's responsibilities after the assignment of the Franchise Agreement. The document does outline conditions and procedures related to the transfer of the franchise.
Specifically, the FDD mentions that a transfer fee, set by Gold Star, is required for transfers. As of the date of the agreement, this fee is $3,500 but is subject to change. Additionally, the transferee must execute Gold Star's current franchise agreement form for the remaining term of the original agreement, without paying an initial franchise fee.
To fully understand Gold Star's responsibilities after assignment, a prospective franchisee should inquire with Gold Star about specific policies and procedures related to assignment, including any ongoing obligations or liabilities Gold Star may have after the transfer is completed. This information is crucial for making an informed decision about investing in a Gold Star franchise.