How long does a Gold Star franchisee have to file a claim related to the franchise agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.6 Limitation of Claims.
Except for: (i) claims against FRANCHISEE concerning the underreporting of Gross Sales and corresponding underpayment of continuing franchise and Brand Building Fees, (ii) claims against FRANCHISEE by The COMPANY relating to third party claims or suits brought against The COMPANY as a result FRANCHISEE's operation of the Store, (iii) claims for injunctive relief to enforce the provisions of this Agreement relating to FRANCHISEE's use of the Marks, (iv) claims against FRANCHISEE by The COMPANY for injunctive relief relating to FRANCHISEE's financial obligations upon the termination or expiration of this Agreement, (v) claims against FRANCHISEE by The COMPANY concerning FRANCHISEE's obligations under Articles 11 or 12 of this Agreement, and (vi) claims against FRANCHISEE by The COMPANY regarding an assignment of this Agreement or any ownership interests therein, any and all claims arising out of or relating to this Agreement or the relationship between the parties will be barred unless an action is commenced within one year from the date FRANCHISEE or The COMPANY knew or should have known of the facts giving rise to such claims.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee has a limited time to bring claims against Gold Star. Except for specific claim types, any claims arising out of or relating to the Franchise Agreement or the relationship between the parties will be barred unless an action is commenced within one year. This one-year period starts from the date the franchisee or Gold Star knew or should have known of the facts giving rise to such claims.
Several types of claims are excluded from this one-year limitation. These include claims against the franchisee concerning the underreporting of Gross Sales and the corresponding underpayment of continuing franchise and Brand Building Fees. Also excluded are claims against the franchisee by Gold Star relating to third-party claims or suits brought against Gold Star as a result of the franchisee's store operation. Claims for injunctive relief to enforce the provisions of the Agreement relating to the franchisee's use of the Marks, claims against the franchisee by Gold Star for injunctive relief relating to the franchisee's financial obligations upon termination or expiration of the Agreement, claims against the franchisee by Gold Star concerning the franchisee's obligations under Articles 11 or 12 of the Agreement, and claims against the franchisee by Gold Star regarding an assignment of the Agreement or any ownership interests therein are not subject to the one-year limitation.
This means that a Gold Star franchisee needs to be diligent in identifying and pursuing any potential claims they may have against Gold Star within a year of discovering the facts that give rise to those claims, unless the claim falls into one of the enumerated exceptions. Failure to do so could result in the claim being barred. Franchisees should consult with an attorney to understand their rights and the applicable statute of limitations for any potential claims.