Must the offer submitted to Gold Star for right of first refusal be from a fully disclosed purchaser?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything contained in this Agreement to the contrary, if FRANCHISEE or any Principal wishes to Transfer or accept an offer to Transfer, in any manner whatsoever, all or any part of any of the Restricted Assets, or any interest therein, FRANCHISEE or its Principals, as the case may be, will first obtain a bona fide, executed, written offer from a fullydisclosed purchaser and will submit an exact copy thereof to the COMPANY.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer any part of their assets, they must first obtain a written offer from a fully disclosed purchaser. This means the offer presented to Gold Star for their right of first refusal must come from a buyer who has revealed their identity.
This requirement ensures transparency in the transfer process, allowing Gold Star to make an informed decision about whether to exercise their right of first refusal. By knowing the purchaser's identity, Gold Star can assess their suitability as a potential franchisee and evaluate the offer more thoroughly.
For a prospective Gold Star franchisee, this means that when planning to sell their franchise, they must ensure that any offer they receive and present to Gold Star is from a purchaser who is willing to fully disclose their identity. Failure to do so could delay or complicate the transfer process.