Is Gold Star obligated to approve a franchisee's request to relocate their store?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.5 Relocation. If FRANCHISEE desires to move its Store to another location during the term of this Agreement (including but not limited to a desire to move because FRANCHISEE's lease, or any extension or renewal thereof, terminates during the term of this Agreement through no fault of FRANCHISEE), FRANCHISEE must apply for and be granted approval to relocate (the COMPANY is not obligated to grant such approval) and to purchase a franchise for a different location, must satisfactorily complete the site selection process and must sign and comply with the COMPANY's then current form of franchise agreement, including but not limited to the fee (including initial, weekly, advertising and other fees), appearance, design, lease and other requirements thereof. If FRANCHISEE's lease, or any extension or renewal thereof, terminates during the term of this Agreement due to any fault of FRANCHISEE, this Agreement shall terminate at the option of the COMPANY upon written notice from the COMPANY.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star is not obligated to approve a franchisee's request to relocate their store. The FDD states that if a franchisee wishes to move their Gold Star store to a different location during the term of the agreement, they must apply for and be granted approval to relocate. However, Gold Star is not required to grant this approval.
To relocate, a franchisee must also purchase a franchise for the new location, complete the site selection process to Gold Star's satisfaction, and sign Gold Star's current franchise agreement. This includes adhering to all current fees (initial, weekly, advertising, etc.) and meeting the brand's appearance, design, and lease requirements.
Furthermore, if a franchisee's lease terminates due to any fault of their own, Gold Star has the option to terminate the franchise agreement with written notice. This highlights the importance of franchisees maintaining their lease agreements to avoid potential termination by Gold Star.