Can Gold Star place conditions on its approval of a Retail Location Lease?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.3 Approval of Lease. If FRANCHISEE intends to occupy the Retail Location under a lease, sublease, or other contract of tenancy (collectively, the "Lease"), any such Lease (and any amendment, renewal or extension thereof) must be approved by the COMPANY prior to its execution. The COMPANY's approval of the Lease may be conditioned upon the inclusion of such provisions as the COMPANY reasonably requires, including without limitation, those provisions set forth on Exhibit B attached hereto.
- 4.4 Use of Leasing Counsel. The COMPANY may, at its discretion, at any time prior to its approval of the Lease, require FRANCHISEE to engage attorneys of the COMPANY's choosing to advise FRANCHISEE and negotiate the terms of the Lease. The expenses of such leasing attorneys shall be the sole responsibility of FRANCHISEE.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star's approval of a lease for a retail location can be conditional. Specifically, Gold Star may require the inclusion of certain provisions in the lease agreement as a condition of approval. These provisions are detailed in Exhibit B of the Franchise Agreement.
Exhibit B outlines several lease provisions that Gold Star may require. These include stipulations such as restricting the use of the premises solely to the operation of the franchised business, allowing Gold Star to enter the retail location to de-identify the business without penalty under certain conditions, and requiring the landlord to provide Gold Star with advanced notice of any contemplated termination of the lease. The exhibit also grants Gold Star the right to assume the franchisee's leasehold interest upon termination or expiration of the lease or the franchise agreement, and to modify the lease term to be coterminous with the franchise agreement.
Furthermore, Gold Star reserves the right to enter the premises to protect its marks or cure any default under the agreement, and to prevent modifications to the lease that could materially affect Gold Star's rights without prior written consent. These conditions ensure that Gold Star maintains control over the brand's image and operational standards, and protects its interests in the event of franchisee default or lease termination.
Prospective franchisees should carefully review Exhibit B and understand the implications of these required lease provisions. They should also be prepared to negotiate with landlords to include these provisions in the lease agreement to secure Gold Star's approval. Additionally, Gold Star may require the franchisee to engage attorneys of Gold Star's choosing to advise the franchisee and negotiate the terms of the Lease, with the expenses being the sole responsibility of the franchisee.