Who is responsible for the expenses of the leasing attorneys chosen by Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to Section 6.8, above, FRANCHISEE shall be entitled to retain independent legal counsel, provided that the COMPANY shall not be responsible for the cost of any such legal counsel.
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 responsible for the cost of their own legal counsel. Specifically, while the franchisee has the right to retain independent legal counsel, Gold Star explicitly states that it will not be responsible for covering those legal expenses. This means that any fees or costs associated with hiring an attorney to review the franchise agreement or provide legal advice fall solely on the franchisee.
This allocation of legal expenses is a standard practice in franchising. It ensures that franchisees can seek independent advice tailored to their specific circumstances without creating a financial burden for Gold Star. Prospective franchisees should factor in these potential legal costs when evaluating the overall investment required to start a Gold Star franchise.
It is important for potential Gold Star franchisees to understand that they are expected to cover their own legal expenses related to the franchise agreement. This includes the cost of reviewing the FDD, the franchise agreement, and any other legal documents associated with the franchise. Therefore, budgeting for legal counsel is a crucial step in the due diligence process before signing a franchise agreement with Gold Star.