What is the personal representative's responsibility if the heirs or devisees cannot meet the conditions in Section 13.4 for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
However, in the case of Transfer by devise or inheritance, if the heirs or devisees of any such person are unable to meet the conditions in Section 13.4, the personal representative of the deceased FRANCHISEE shall have a reasonable time to dispose of the decedent's interest in the franchise, which disposition shall be subject to all applicable terms and conditions for transfers contained in this Agreement.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Section 13.8 outlines the responsibilities regarding the death or disability of a person with a controlling interest in the franchise. If the heirs or devisees are unable to meet the conditions outlined in Section 13.4, the personal representative of the deceased franchisee is granted a reasonable timeframe to sell the decedent's interest in the Gold Star franchise. This sale is subject to all the standard terms and conditions for transfers as detailed in the franchise agreement.
In simpler terms, if the person who inherits the Gold Star franchise doesn't qualify to run it based on Gold Star's standards (outlined in section 13.4), the executor of the deceased's estate has the responsibility to find a qualified buyer for the franchise. This ensures that the franchise continues to operate under someone who meets Gold Star's requirements, maintaining the brand's standards and reputation.
This provision protects Gold Star by ensuring that franchises are operated by qualified individuals even after the death of the original franchisee. For a prospective franchisee, this means understanding that their heirs may not automatically inherit the franchise unless they meet Gold Star's criteria, and their estate may need to sell the franchise if their heirs are not qualified.