If I have to change the trademark I use for my Gold Star franchise, who bears the expenses?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
If it becomes advisable at any time in Gold Star's sole discretion for Gold Star and/or you to modify or discontinue use of any of the Marks, and/or to use one or more additional or substitute marks, names, logos or indicia, you must do so at your expense within a reasonable time after Gold Star so instructs you to do so in writing.
Gold Star is currently in the process of modernizing its trademarks and will be transitioning the System to use the marks in the chart below in the coming months and years. In the United States, Gold Star has filed "intent to use" applications with respect to these trademarks, names, symbols and logos with the United States Patent and Trademark Office, with the intent of ultimately registering them on the principal register. With respect to these marks only, we do not have a federal registration for these marks. Therefore, these marks do not have many legal benefits and rights as a federally registered trademark. If our right to use these marks are challenged, you may have to change to an alternative trademark, which may increase your expenses.
Source: Item 13 — Trademarks (FDD pages 37–40)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if it becomes necessary to modify or discontinue the use of any of the marks, or to use substitute marks, the franchisee is responsible for these expenses. The FDD states that the franchisee must make these changes at their own expense within a reasonable time frame after Gold Star provides written instructions.
This means that as a Gold Star franchisee, you would bear the financial burden of updating signage, marketing materials, and any other branded items if Gold Star decides to change its trademarks. This could potentially involve significant costs, depending on the extent of the changes and the amount of branded material that needs to be updated.
Furthermore, Gold Star is currently modernizing its trademarks, and if their right to use these marks is challenged, franchisees may have to change to an alternative trademark, which may increase expenses. This is a potential risk for franchisees, especially considering that Gold Star does not have federal registration for some of these modernized marks, which limits their legal protection. It is important for prospective franchisees to factor in these potential costs when evaluating the Gold Star franchise opportunity.