How much notice will the Gold Star Company provide before enacting changes to insurance requirements?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.4 Changes to Insurance Requirements. The COMPANY shall have right to increase the minimum coverage, decrease the maximum deductible, or require different or additional kinds of insurance to reflect inflation, changes in standards of liability, higher damage awards, or other relevant changes in circumstances by providing written notice of such changes to FRANCHISEE at least thirty (30) days prior to enacting such requirement.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star will provide franchisees with written notice at least thirty (30) days before enacting changes to insurance requirements. This allows franchisees time to adjust their insurance coverage to meet the new requirements.
This 30-day notice period is designed to give franchisees sufficient time to comply with any increased minimum coverage, decreased maximum deductible, or requirements for different or additional kinds of insurance. These changes may be necessary to reflect inflation, changes in standards of liability, higher damage awards, or other relevant changes in circumstances.
It is important for prospective Gold Star franchisees to understand that Gold Star has the right to modify insurance requirements, and franchisees are obligated to stay compliant. Failure to maintain the required insurance can result in Gold Star procuring insurance on the franchisee's behalf, with the franchisee responsible for reimbursing Gold Star for the costs and premiums, including interest.