factual

What might Gold Star require to be included in a lease agreement as a condition of approval?

Gold_Star Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

EXHIBIT B TO FRANCHISE AGREEMENT

LEASE PROVISIONS

    1. A provision that restricts the use of the premises solely to the operation of the franchised business;
    1. A provision permitting the COMPANY to enter the Retail Location to de-identify the Business without penalty in accordance with Section 14 of this Agreement.
    1. A provision requiring the landlord to provide the COMPANY with reasonable advanced notice if there is any contemplated termination and granting the COMPANY a reasonable amount of time, at the COMPANY's option, to avoid such termination (upon any such event, FRANCHISEE shall reimburse the COMPANY for all costs and expenses incurred in connection with such avoidance).
    1. A provision that reserves to the COMPANY the right, but not the obligation, to assume FRANCHISEE's leasehold interest, with the right to sublease, upon termination or expiration of the lease or of this Agreement, without any assessment of additional fees, penalties, or rent acceleration; and
    1. A provision that modifies the term of the lease so that it is coterminous with this Agreement.
    1. A provision that gives the COMPANY the right, but not the obligation, to enter the premises or make modifications necessary to protect the Marks or the System or to cure any default under this Agreement; and
    1. A provision that restricts the lease from being modified in a manner that could materially affect the COMPANY's rights with respect to the lease, without the COMPANY's prior written consent.

Source: Item 23 — Receipts (FDD pages 53–163)

What This Means (2025 FDD)

According to Gold Star's 2025 Franchise Disclosure Document, any lease, sublease, or other contract of tenancy must be approved by Gold Star before it is executed. Gold Star's approval of the lease may be conditional upon the inclusion of provisions that they reasonably require.

Specifically, Exhibit B to the Franchise Agreement outlines several lease provisions that Gold Star may require. These include a provision restricting the use of the premises solely to the operation of the franchised business, and a provision permitting Gold Star to enter the retail location to de-identify the business without penalty, in accordance with Section 14 of the agreement.

Additional provisions Gold Star may require include: that the landlord provide Gold Star with reasonable advanced notice of any contemplated termination, granting Gold Star time to avoid such termination (with the franchisee reimbursing Gold Star for all costs incurred); reserving Gold Star's right to assume the franchisee's leasehold interest upon termination or expiration of the lease or the agreement, without additional fees or rent acceleration; modifying the lease term to be coterminous with the Franchise Agreement; granting Gold Star the right to enter the premises or make modifications to protect the Marks or the System or cure any default under the agreement; and restricting modifications to the lease that could materially affect Gold Star's rights without their prior written consent.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.