If a Gold Star franchisee fails to remove or alter the Marks, what rights does the company have?
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, the company has specific rights if a franchisee fails to remove or alter the Marks after termination or expiration of the franchise agreement. Specifically, after thirty days from the termination date, the franchisee must remove the Marks from all buildings, signs, fixtures, and furnishings. Additionally, within thirty days of written notice from Gold Star, the franchisee must alter and repaint structures to a design and color different from Gold Star's authorized standards.
If the franchisee fails to comply with these requirements, Gold Star has the right to enter the retail location without being considered guilty of trespass or any other civil wrong. Gold Star can then make or arrange for the removal, alterations, and repainting at the franchisee's expense. The franchisee is obligated to pay these expenses to Gold Star upon demand.
This clause ensures that upon termination or expiration of the franchise agreement, the franchisee takes necessary steps to de-identify the business from the Gold Star brand, protecting Gold Star's brand identity and preventing potential confusion among customers. The franchisee is responsible for all costs associated with this de-identification process, and failure to comply allows Gold Star to take direct action at the franchisee's expense.