factual

What importance is placed on time within the Gold Star franchise agreement?

Gold_Star Franchise · 2025 FDD

Answer from 2025 FDD Document

onable request of the COMPANY. FRANCHISEE shall, at its sole expense, at all times maintain the interior and exterior of the Store, the signs, furniture, fixtures and equipment therein contained, and the surrounding area in a clean and attractive condition satisfactory to the COMPANY and in compliance with the COMPANY's design, appearance, decor and other standards.

  • 5.12 Refurbishment of Store. At the request of the COMPANY, FRANCHISEE will refurbish the Store at its own expense to conform to the trade dress, color schemes and presentation of the Marks in a manner consistent with the image then in effect for new Gold Star Chili restaurants under the System. Such refurbishment may include structural changes, installation of new equipment and signs, remodeling, redecoration, and modifications to existing improvements. FRANCHISEE will complete the refurbishing within the time period specified by the COMPANY pursuant to Section 3.3 hereof. FRANCHISEE acknowledges that the COMPANY cannot estimate the costs of refurbishment but any request by the COMPANY will be in its reasonable discretion. Notwithstanding the foregoing, the COMPANY shall not require FRANCHISEE to fully refurbish the Store during the following periods: (a) if the Store will be newly-constructed in connection with this Agreement, (i) during the period commencing with the date of this Agreement and ending on the five-year anniversary of the Store opening for business to the general public and (ii) the period commencing on the date which is one year prior to the expiration of the initial term of this Agreement, and ending on the last day of the initial term of this Agreement; or (b) if the Store will not be newly-constructed in connection with this Agreement, (i) during the period commencing with the date of this Agreement and ending on the one-year anniversary of the Store opening for business to the general public and (ii) the period commencing on the date which is one year prior to the expiration of the initial term of this Agreement.
  • 5.13 Compliance with Law. FRANCHISEE shall promptly pay when due all taxes and assessments and all other indebtedness, liabilities and obligations of FRANCHISEE of every kind or character; shall comply with all federal, state and local laws and regulations (including, without limitation, the ADA, Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, and any other employment laws relating to the payment of employee-related taxes and withholdings, occupational hazards and health, dispensing of food products, consumer protection, trade regulation, employment discrimination and sexual harassment) and shall obtain in a timely manner any and all permits, certificates, registrations, or licenses necessary for the construction, refurbishing and full and proper operation of the Store. FRANCHISEE agrees and acknowledges that FRANCHISEE alone will be responsible for compliance with the obligations under this Section, and that the COMPANY has no obligation with respect thereto.

  • 5.14 Correction of Deficiencies.

Source: Item 23 — Receipts (FDD pages 53–163)

What This Means (2025 FDD)

According to the 2025 Gold Star Franchise Disclosure Document, time is a significant factor in several aspects of the franchise agreement. Franchisees must make timely written requests for the company's approval or consent whenever required by the agreement. However, the company is not liable for any neglect, delay, or denial of such requests. Franchisees also receive the Franchise Disclosure Document 14 calendar days before signing any binding agreement or making any payment to Gold Star. This timeframe allows potential franchisees to thoroughly review the document and seek independent advice.

Furthermore, Gold Star specifies timeframes for store refurbishments. Franchisees are expected to complete refurbishments within the period specified by the company. However, there are exceptions: newly-constructed stores are exempt from full refurbishment for five years after opening, and existing stores are exempt for one year. In both cases, there is also a one-year exemption prior to the expiration of the initial franchise term. These stipulations provide franchisees with some financial relief and flexibility regarding major store updates.

In addition, if a franchisee fails to comply with the standards and specifications required by Gold Star, or violates any other provisions of the agreement, they are given a specific time period to cure the violation. Failure to do so could result in the loss of their protected territory. Overall, the Gold Star franchise agreement emphasizes the importance of adhering to deadlines and timeframes for various obligations, from seeking approvals to completing store improvements and addressing violations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.