If Gold Star instructs the franchisee to use substitute marks, when must the franchisee comply?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
If it becomes advisable at any time in the COMPANY's sole discretion for the COMPANY and/or FRANCHISEE 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, FRANCHISEE agrees to do so at its expense within a reasonable time after the COMPANY so instructs FRANCHISEE in writing.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if Gold Star determines it advisable to modify or discontinue the use of any of its marks, or to use substitute marks, the franchisee must comply. The franchisee is responsible for doing so at their own expense. Compliance must occur within a reasonable time frame after Gold Star provides written instructions to the franchisee.
This means that as a Gold Star franchisee, you must be prepared to adapt your signage, marketing materials, and other branding elements if Gold Star decides to change its marks. This could be due to rebranding efforts, legal challenges, or other strategic reasons. The franchisee bears the financial burden of these changes, which could include replacing signs, updating promotional materials, and retraining staff.
The requirement for franchisees to comply within a "reasonable time" provides some flexibility, but ultimately, Gold Star has the authority to dictate the timeline. It is important for prospective franchisees to factor in the potential costs and operational disruptions associated with these changes when evaluating the franchise opportunity. Franchisees should maintain open communication with Gold Star to understand the reasons behind any mark changes and to plan for a smooth transition.