Does the Gold Star renewal agreement contain provisions for any further renewal terms?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
16.1 Renewal Option. Except where applicable state law provides otherwise, FRANCHISEE, unless the franchise is terminated as herein otherwise provided, shall have the option at the expiration of the term of this Agreement to renew the franchise granted hereunder by executing the COMPANY's then-current form of franchise agreement for one additional term of ten (10) years unless a different number of renewal terms and/or a different length of such term(s) are set forth on the cover page of this Agreement, which if applicable, the cover page terms shall prevail over the conflicting terms of this section 16 (provided that the COMPANY is then still offering franchises for Restaurants using the Marks and the System and provided that such form of franchise agreement shall not contain provisions for any renewal term):
16.1.1 FRANCHISEE gives the COMPANY written notice of its election to renew not less than six (6) months nor more than nine (9) months prior to the expiration of the term of this Agreement and satisfies all other conditions set forth herein at the earlier of the times required or the date of expiration of this Agreement;
16.1.2 FRANCHISEE has secured the premises for the Retail Location by ownership or lease (satisfactory to the COMPANY) for the renewal term;
16.1.3 FRANCHISEE, and its partners, members and shareholders, each executes a general release in form and substance satisfactory to the COMPANY (limited to the extent required by applicable Franchise Law, if any), of any and all claims against the COMPANY, its affiliates, shareholders, directors, officers and employees;
16.1.4 FRANCHISEE, at the time of notice of election to renew and at the end of the term of this Agreement, is not in default of any of the terms, conditions, covenant or provision of this Agreement (and no event described in Section 14 exists), or any other agreement between FRANCHISEE and the COMPANY or any of its affiliates, and has substantially complied with the terms and conditions of all such agreements during the term of this Agreement;
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, franchisees have the option to renew their franchise agreement for one additional term of ten years, provided that Gold Star is still offering franchises for restaurants using their marks and system. However, the renewal agreement itself cannot contain provisions for any further renewal terms. The specific number of renewal terms or the length of those terms may differ if stated on the cover page of the agreement, in which case the cover page terms would take precedence.
To exercise the renewal option, a Gold Star franchisee must provide written notice to Gold Star between six and nine months before the expiration of the current agreement. The franchisee must also secure the premises for the retail location through ownership or a lease satisfactory to Gold Star for the renewal term. Additionally, the franchisee, along with their partners, members, and shareholders, must execute a general release of claims against Gold Star and its affiliates.
Furthermore, at the time of the renewal notice and at the end of the current agreement, the franchisee must not be in default of any terms or conditions of the agreement or any other agreement with Gold Star or its affiliates. The franchisee must also have substantially complied with all agreements during the current term. Failure to meet these conditions will be considered an election not to renew the franchise.