Does Gold Star have any pending material litigation involving the trademarks licensed to me?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
There are no currently effective material determinations of the United States Patent and Trademark Office, trademark trial and appeal board, the trademark administrator of this state or any court, and there are no pending infringement, opposition or cancellation proceedings, nor any pending material litigation, involving the primary trademarks, service marks, names, logos and symbols licensed to, and to be used by, you to identify the Franchise business.
Source: Item 13 — Trademarks (FDD pages 37–40)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, there are no currently effective material determinations from the United States Patent and Trademark Office, trademark trial and appeal board, the trademark administrator of this state or any court. Additionally, there are no pending infringement, opposition or cancellation proceedings, nor any pending material litigation, involving the primary trademarks, service marks, names, logos and symbols licensed to, and to be used by, you to identify the Franchise business. This indicates that as of the FDD's publication, Gold Star is not involved in any legal disputes that would materially affect a franchisee's use of the licensed trademarks.
However, Gold Star is in the process of modernizing its trademarks and will be transitioning the System to use the marks in the coming months and years. Gold Star has filed "intent to use" applications with respect to these trademarks, names, symbols and logos with the United States Patent and Trademark Office, with the intent of ultimately registering them on the principal register. With respect to these marks only, Gold Star does not have a federal registration for these marks. Therefore, these marks do not have many legal benefits and rights as a federally registered trademark. If Gold Star's right to use these marks are challenged, a franchisee may have to change to an alternative trademark, which may increase expenses.
The FDD also states that a franchisee must notify Gold Star promptly of any claim, demand, or legal action by any third party involving the Marks. Gold Star retains the exclusive right to determine and undertake actions to prevent infringement of the Marks. If a legal action is brought against the franchisee challenging their right to use the Marks, Gold Star may assume the defense and indemnify the franchisee against damages if the franchisee provides timely notice, cooperates fully, and allows Gold Star to control the defense strategy. The franchisee is obligated to execute documents necessary for the defense or prosecution of any litigation pertaining to the Marks. Gold Star is not responsible for the cost of any independent legal counsel retained by the franchisee in any litigation.
Furthermore, the franchisee agrees not to contest the validity, ownership, or enforceability of any Marks. If Gold Star deems it advisable to modify or discontinue the use of any Marks, the franchisee must do so at their expense within a reasonable time after receiving written instructions from Gold Star. Gold Star also states that there are no superior prior rights or infringing uses actually known to Gold Star that could materially affect the franchisee's use of the trademarks.