What happens to the rights, privileges, and licenses granted by Gold Star to the franchisee upon termination or expiration of the agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1 De-Identification; Wind-Down of Business. Upon the termination or expiration of this Agreement, or upon the permanent closing or abandonment of the Store or the Business, the following provisions shall apply:
- 15.1.1 All rights, privileges and licenses granted by the COMPANY to FRANCHISEE will immediately cease, be null and void, and of no further force and effect, and all such privileges and licenses will immediately revert to the COMPANY.
- 15.1.2 FRANCHISEE shall immediately discontinue the use of the System and the Marks. All rights granted herein with respect to the Marks and System shall thereupon be deemed canceled and terminated.
- 15.1.3 Unless FRANCHISEE receives written notice of the COMPANY's exercise of its options set forth in Section 15.2 below, after thirty (30) days have elapsed since the effective date of termination, FRANCHISEE shall immediately remove the Marks from all buildings, signs, fixtures and furnishings, and within thirty (30) days' after written notice from the COMPANY, alter and paint all structures and other improvements maintained pursuant to this Agreement a design and color which is basically different from the COMPANY's authorized building design and painting schedule and otherwise assist COMPANY in every way possible to bring about a complete and effective wind-down and de-identification of the Business. If FRANCHISEE shall fail to make or cause to be made any such removal, alteration or repainting, then the COMPANY shall have the right to enter upon the Retail Location, without being deemed guilty of trespass or any other tort or civil wrong, and make or cause to be made such removal, alterations and repainting at the reasonable expense of FRANCHISEE, which expense FRANCHISEE shall pay the COMPANY upon demand. FRANCHISEE shall not be deemed to have waived any rights which FRANCHISEE may have under any Franchise Law by reason
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, all rights, privileges, and licenses granted to the franchisee by Gold Star immediately cease and revert back to Gold Star. This means the franchisee no longer has any authorization to operate under the Gold Star brand or utilize its established systems.
Specifically, the franchisee must immediately discontinue using the Gold Star system and marks. Unless Gold Star provides written notice of exercising its options to take over the location, the franchisee is required to remove all Gold Star marks from the premises within 30 days of termination. This includes removing signs, fixtures, and furnishings. The franchisee must also alter and repaint the structures to a design and color that is distinctly different from Gold Star's authorized design and color scheme within 30 days of receiving written notice from Gold Star.
If the franchisee fails to comply with these de-identification requirements, Gold Star has the right to enter the retail location and perform the necessary removals, alterations, and repainting at the franchisee's expense. The franchisee is responsible for paying these expenses upon demand from Gold Star. These measures ensure a complete separation of the business from the Gold Star brand, protecting the integrity and reputation of the franchise system.