Can Gold Star require franchisees to use specific leasing counsel?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
tail Location, you will have to locate a new proposed Retail Location that is not rejected.
Any lease for the Retail Location also must be acceptable to Gold Star and contain such provisions as Gold Star requires pursuant to the Franchise Agreement. We may require that you use leasing counsel approved or designated by us to repr
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star may require franchisees to use leasing counsel that the company has approved or designated. This counsel would represent the franchisee in the lease negotiation for their Gold Star franchise location.
The FDD also states that the fees for using this leasing counsel typically range from $2,500 to $3,500. This means a prospective franchisee should budget for these legal expenses in addition to other startup costs.
It is important to note that if a franchisee and Gold Star enter into a Franchise Agreement before the site selection process is complete, the retail location must be selected and approved (along with the lease) within 6 months of signing the Franchise Agreement. Failure to do so puts the franchisee in default of the agreement. Similarly, the franchised restaurant must open within 12 months of the retail location's approval, or the franchisee will be in default. Gold Star will provide a 10-day notice to remedy the default, but if it is not resolved, Gold Star has the option to terminate the Franchise Agreement.