What happens upon the death or permanent incapacity of a Gold Star franchisee that is a natural person?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the death or permanent incapacity of any person with a direct or indirect controlling interest in this franchise or in FRANCHISEE, and upon the dissolution of a FRANCHISEE that is a partnership, limited liability company, or corporation, or the death or permanent incapacity of a FRANCHISEE that is a natural person, the executor, administrator, personal representative or trustee of such person or entity shall transfer his or its interest to a third party approved by the COMPANY within six (6) months.
Such Transfer, including, without limitation, transfers by devise or inheritance, shall be subject to the same conditions of this Section 13 as an intervivos Transfer.
However, in the case of Transfer by devise or inheritance, if the heirs or devisees of any such person are unable to meet the conditions in Section 13.4, the personal representative of the deceased FRANCHISEE shall have a reasonable time to dispose of the decedent's interest in the franchise, which disposition shall be subject to all applicable terms and conditions for transfers contained in this Agreement.
- 13.9 Death or Disability of Manager.
If the person dying or becoming permanently incapacitated is the Manager of the Store, and if a successor Manager has not been designated complying with the requirements of this Agreement and able to serve as Manager, the COMPANY or its designee shall have the right, but not obligation, to operate the Store until the disposition of such deceased or incapacitated person's interest is accomplished or such six (6) month period expires, whichever first occurs, and the COMPANY shall have the right to charge FRANCHISEE an appropriate fee (not to exceed eight percent (8%) of weekly Gross Sales during such period of operation) and reasonable expenses therefor but the COMPANY shall not be liable for any losses incurred by the Store during or arising out of such period of operation.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, in the event of the death or permanent incapacity of a franchisee who is a natural person, their executor, administrator, personal representative, or trustee is required to transfer the franchisee's interest to a third party approved by Gold Star within six months. This transfer is subject to the same conditions outlined in Section 13 of the franchise agreement as any other transfer made during the franchisee's lifetime.
However, if the heirs or devisees are unable to meet the conditions specified in Section 13.4, the personal representative of the deceased franchisee is granted a reasonable period to dispose of the decedent's interest in the franchise. This disposition remains subject to all applicable terms and conditions for transfers as detailed in the franchise agreement.
Additionally, if the person who dies or becomes permanently incapacitated is the designated manager of the Gold Star store, and a successor manager has not been appointed who meets the agreement's requirements, Gold Star has the option, but not the obligation, to operate the store. This arrangement continues until the deceased or incapacitated person's interest is resolved or until six months have passed, whichever occurs first. Gold Star is entitled to charge the franchisee a fee not exceeding eight percent of weekly gross sales, along with reasonable expenses incurred during this period. However, Gold Star is not liable for any losses the store incurs during or arising from this period of operation.