If the Gold Star company provides a suggestion to the franchisee, does the company assume any liability?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The COMPANY makes no warranties, representations, or guarantees upon which FRANCHISEE may rely, and assumes no liability or obligation to FRANCHISEE, by providing any waiver, approval, consent or suggestion to FRANCHISEE in connection with this Agreement, or by reason of any neglect, delay or denial of any request therefor.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star makes no guarantees and assumes no liability to the franchisee by providing any suggestion to the franchisee in connection with the Franchise Agreement. This also applies to any waiver, approval, or consent that Gold Star provides to the franchisee. Furthermore, Gold Star is not liable for any obligation to the franchisee by reason of any neglect, delay, or denial of any request.
This means that if Gold Star offers advice or recommendations to a franchisee, the franchisee cannot hold Gold Star responsible for any negative outcomes that may result from following that advice. It is the franchisee's responsibility to evaluate the suggestions and make their own informed decisions. This is a common provision in franchise agreements, as it protects the franchisor from being held liable for the business decisions of its franchisees.
Prospective franchisees should carefully consider this provision and understand that they are ultimately responsible for the success or failure of their Gold Star franchise. While Gold Star may offer guidance and support, it is up to the franchisee to make sound business decisions and manage their franchise effectively. It is advisable for franchisees to seek independent legal and business advice before making any major decisions that could impact their franchise.