How long does Gold Star have to prepare for the purchase if it substitutes cash?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
After the receipt by the COMPANY of such offer, the COMPANY shall have thirty (30) days to purchase the Restricted Assets for the price and on the terms and conditions contained in the written proposed offer.
Failure of the COMPANY to accept such offer within said thirty (30) days shall constitute a rejection (provided that the COMPANY may substitute cash for any form of payment proposed in such offer and shall have not less than sixty (60) days to prepare for
closing).
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 receives an offer to purchase restricted assets from a franchisee, it has 30 days to decide whether to accept the offer. However, if Gold Star chooses to substitute cash for any other form of payment proposed in the offer, it is granted additional time to prepare for the closing.
Specifically, Gold Star will have no less than 60 days to prepare for closing if it elects to pay with cash instead of the terms initially proposed. This clause provides Gold Star with more flexibility in financing the purchase and ensures they have adequate time to arrange the necessary funds.
This right of first refusal allows Gold Star to maintain control over the transfer of franchise locations and assets, ensuring that any transfer aligns with the company's strategic interests. The extended preparation time when substituting cash provides Gold Star with a practical advantage in these transactions.