What page number in the Gold Star FDD contains information about 'Default and Termination'?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
14.4.9 The occurrence of repeated defaults of the same or a different nature regardless of cure;
14.4.10 FRANCHISEE refuses to provide information on or reports required by the COMPANY or to permit inspections or audits;
14.4.11 FRANCHISEE fails to submit financial statements or sales reports when same are due hereunder;
14.4.12 The COMPANY discovers that FRANCHISEE has made any material misrepresentations or omitted any material fact in the information furnished by FRANCHISEE in connection with the grant of this franchise; or
14.4.13 FRANCHISEE sells the Products at any location other than the Retail Location or in any form other than that approved by the COMPANY.
14.5 Termination after Opportunity to Cure.
This Agreement (except as otherwise provided in Section 26, below) and all rights granted FRANCHISEE hereunder will terminate upon the occurrence of any of the following events unless cured to
the satisfaction of the COMPANY within ten (10) days (or such shorter or longer time if specified) after the COMPANY's written notice of such default to FRANCHISEE (FRANCHISEE must provide evidence of such cure to the COMPANY). If any such default is not so cured within that period, the COMPANY may, at its option, terminate this Agreement by written notice of termination, and all rights of FRANCHISEE hereunder shall thereupon terminate.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
The 2025 Gold Star Franchise Disclosure Document contains information regarding default and termination of the franchise agreement on page 93. Specifically, this section outlines the conditions under which Gold Star may terminate the franchise agreement if the franchisee fails to correct certain defaults within a specified timeframe, typically ten days after written notice from Gold Star.
According to the FDD, some events that could lead to termination include repeated defaults, failure to provide required information or reports, submitting inaccurate information, or selling products outside of the approved location or form. These stipulations are designed to ensure franchisees adhere to Gold Star's standards and maintain the integrity of the brand.
It's important for prospective franchisees to carefully review these conditions to understand their obligations and the potential consequences of non-compliance. Understanding these terms can help franchisees avoid actions that could jeopardize their franchise agreement and investment with Gold Star.