Who is responsible for compliance with laws related to the Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall promptly pay when due all taxes and assessments and all other indebtedness, liabilities and obligations of FRANCHISEE of every kind or character; shall comply with all federal, state and local laws and regulations (including, without limitation, the ADA, Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, and any other employment laws relating to the payment of employee-related taxes and withholdings, occupational hazards and health, dispensing of food products, consumer protection, trade regulation, employment discrimination and sexual harassment) and shall obtain in a timely manner any and all permits, certificates, registrations, or licenses necessary for the construction, refurbishing and full and proper operation of the Store.
FRANCHISEE agrees and acknowledges that FRANCHISEE alone will be responsible for compliance with the obligations under this Section, and that the COMPANY has no obligation with respect thereto.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the franchisee is solely responsible for complying with all applicable federal, state, and local laws and regulations. This includes, but is not limited to, the Americans with Disabilities Act (ADA), Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, and other employment laws related to taxes, workplace safety, food handling, consumer protection, trade regulation, employment discrimination, and sexual harassment.
This responsibility extends to obtaining all necessary permits, certificates, registrations, and licenses required for the construction, refurbishment, and operation of the Gold Star store. The franchisee also bears the responsibility for adhering to all federal, state, and local laws, codes, and regulations, including ADA provisions, concerning the construction, design, and operation of the store. Furthermore, the franchisee is responsible for securing all required zoning classifications and clearances.
Gold Star's review and approval of the franchisee's construction plans are limited to ensuring compliance with the company's design standards, such as trade dress and presentation of trademarks. Gold Star's review does not assess compliance with laws and regulations, as this remains the franchisee's responsibility. The franchisee is expected to pay all taxes, assessments, and other debts related to the business promptly.
This allocation of responsibility is typical in franchising, where franchisees are independent business owners responsible for their own operations and legal compliance. Prospective Gold Star franchisees should be aware of the extensive legal and regulatory requirements and ensure they have the resources and expertise to meet these obligations.