How long does the estate of a deceased Gold Star franchisee have to assign the franchise to an approved buyer?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| p. Your death or disability (or that of any person having an interest in you or in the Franchise) | Section 13.8 and the Small Business Association Addendum if applicable | Franchise must be assigned by estate to approved buyer (and pursuant to transfer conditions) in 6 months (see (m), above); if Manager dies or becomes incapacitated and you do not have in place an acceptable successor Manager, Gold Star has the right to operate your Restaurant and charge you an operating fee during the interim period; Under the Small Business Association Addendum if applicable, Gold Star will operate the Restaurant for no more than a 90-day period of time |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 42–45)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if a franchisee dies, their estate has six months to assign the franchise to a buyer that Gold Star approves. This transfer is subject to standard transfer conditions.
This means that the deceased franchisee's estate must find a qualified buyer and complete the transfer process within this timeframe. The buyer must meet Gold Star's criteria for new franchisees, and all transfer requirements must be satisfied. These conditions are further detailed in section 13.4 of the Franchise Agreement.
If the estate fails to assign the franchise within six months, Gold Star may have the right to operate the restaurant. Furthermore, if the manager of the restaurant dies or becomes incapacitated and there is no acceptable successor, Gold Star has the right to operate the restaurant and charge an operating fee during the interim period. However, under the Small Business Association Addendum, Gold Star will operate the Restaurant for no more than a 90-day period of time.
Prospective franchisees should consider this provision carefully, especially if they are relying on the franchise as a key part of their estate planning. It is important to understand the implications of this clause and to discuss it with legal and financial advisors.