How many days does a Gold Star franchisee have to remedy a default after receiving written notice?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to open your franchised Restaurant for business within twelve (12) months of the approval of your Retail Location, you will be in default of the Franchise Agreement. You will have 10 days after receipt of Gold Star's written notice of default to remedy the default. If the default is not remedied timely and satisfactorily, Gold Star may terminate your Franchise Agreement, at its option.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, a franchisee has a limited time to correct a default. Specifically, if a Gold Star franchisee fails to open their franchised Restaurant for business within twelve months of the approval of their Retail Location, it constitutes a default of the Franchise Agreement.
Upon receiving written notice of this default from Gold Star, the franchisee has only 10 days to remedy the situation. This is a short window, emphasizing the importance of adhering to the timeline for opening the restaurant once the location is approved.
If the franchisee fails to satisfactorily remedy the default within the 10-day period, Gold Star has the option to terminate the Franchise Agreement. This highlights the potential risk of losing the franchise if the franchisee does not meet the obligations outlined in the agreement and rectify the default promptly.