Can Gold Star pursue other legal remedies in addition to retaining fees upon termination?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
be compensated by monetary damages in an action at law. Therefore, in addition to any other remedy provided by law or in equity for breach of this Agreement by FRANCHISEE, in the event of a breach or threatened breach by the FRANCHISEE of any of the covenants or provisions of this Agreement, the COMPANY shall be entitled, without the posting of any bond or security, to apply for an order enjoining any such breach or threatened breach or orders of specific performance enforcing the provisions of this Agreement, to obtain an immediate injunction for the appointment of a receiver for FRANCHISEE's business in order to enforce such provisions, to prevent or terminate any existing or threatened violation or default on the part of FRANCHISEE, or if the Agreement has been terminated, the FRANCHISEE may be enjoined from any continued operation of the Store, or any other operation in violation of this Agreement.
15. RIGHTS AND OBLIGATIONS OF PARTIES ON TERMINATION OR EXPIRATION.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star has the right to seek various legal and equitable remedies for a franchisee's breach of the franchise agreement, in addition to retaining fees.
Specifically, Gold Star can pursue court orders to prevent a breach or enforce the agreement. This includes seeking injunctions to stop a franchisee from violating the agreement, orders for specific performance to compel compliance, and the appointment of a receiver to manage the franchisee's business. If the franchise agreement has been terminated, Gold Star can seek an injunction to prevent the franchisee from continuing to operate the store in violation of the agreement.
Furthermore, if Gold Star incurs any costs or expenses, including attorney's fees and court costs, while enforcing its rights under the agreement, it is entitled to recover these costs from the franchisee. These remedies are in addition to any other rights Gold Star may have under the law or in equity, providing Gold Star with multiple avenues for recourse in the event of a breach by the franchisee.