What is the relationship between the trademarks licensed by Gold Star (Item 13) and the franchisee's obligation to maintain the highest degree of quality and service (Item 8)?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
ts is not dependent upon the achievement of a certain sales volume, market penetration or other contingency.
Item 13
Trademarks
Gold Star licenses you to use Marks containing the words "Gold Star" and "Gold Star Chili," and any other current or future Marks that Gold Star authorizes in writing, to identify your Franchise business. The primary trademarks, names, symbols and logos currently licensed to you to identify your Franchise business are set forth in Exhibit A to the Franchise Agreement. The Marks may be used only in operating the Restaurant and only subject to the terms and conditions set forth in the Franchise Agreement and any other rules of Gold Star set forth in the Manual or otherwise. The Franchise Agreement and these other rules impose various restrictions on your use of the Marks.
In the United States, Gold Star has registered the following primary trademarks, names, symbols and logos with the United States Patent and Trademark Office on the principal register:
| Mark | Registration No. | Date Registered | Status | |---|---|---|---| | | 1,338,458 | May 28, 1985 | Renewal due May 28, | | | | | 2035. | | | 1,870,700 | Dec. 27, 1994 | Renewal due June 27, | | | | | 2025. | | GOLD STAR | 1,960,628 | March 5, 1996 | Renewal due March 5, | | | | | 2026. | | | 5,673,572 | February 12, 2019 | Renewal due February | | | | | 12, 2029. | Gold Star is currently in the process of modernizing its trademarks and will be transitioning the System to use the marks in the chart below in the coming months and years.
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the trademarks licensed to franchisees are closely tied to the obligation to maintain high standards of quality and service. Gold Star licenses franchisees to use trademarks containing the words "Gold Star" and "Gold Star Chili," along with any other trademarks Gold Star authorizes in writing. These marks are to be used to identify the franchise business, but only in accordance with the terms and conditions set forth in the Franchise Agreement and the rules in Gold Star's Manual. These rules impose restrictions on the use of the marks.
To ensure the restaurant maintains the highest degree of quality and service, franchisees must operate in strict conformity with the methods, standards, and specifications prescribed by Gold Star in the Manual or in writing. This includes offering for sale only approved products and services, selling all required products and services, purchasing items according to Gold Star's specifications, employing specified preparation standards, and refraining from deviating from Gold Star's standards.
In essence, the right to use Gold Star's trademarks is contingent upon adhering to the franchisor's standards of quality and service. This ensures uniformity across all Gold Star locations and protects the brand's reputation. Franchisees must comply with Gold Star's standards and specifications, including those related to product preparation and approved suppliers, to maintain the right to use the trademarks. Failure to meet these obligations can void Gold Star's warranties and potentially lead to legal action.