Does Gold Star retain exclusive rights to the marks?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
service marks, names, logos and symbols licensed to, and to be used by, you to identify the Franchise business.
There are no agreements currently in effect that significantly limit the rights of Gold Star to use or license the use of the primary trademarks, service marks, names, logos and symbols licensed to, and to be used by, you to identify the Franchise business, in any manner material to the Franchise.
You must notify Gold Star promptly of any claim, demand or legal action by any third party involving the Marks or any potentially infringing use of the Marks, or any mark, name, logo or symbol identical to or confusingly similar to any of the Marks. Under the Franchise Agreement, Gold Star agrees to take whatever actions it deems reasonably necessary to protect the Marks and the goodwill associated therewith. Gold Star retains the exclusive right, in its sole discretion exercised in good faith, to determine and undertake the actions, if any, that it deems appropriate to prevent the infringement of the Marks or the diminution of the goodwill in the Marks. If a third party brings a legal action against you challenging your right to use the Marks as authorized by the Franchise Agreement, Gold Star may, in its sole discretion, assume your defense utilizing counsel of Gold Star's choice and must indemnify you against all damages for infringement for which you are held liable in that action arising out of your authorized use of the Marks pursuant to and in compliance with the Franchise Agreement, if the following conditions are satisfied: (a) you provide Gold Star with timely notice of the institution of the action, (b) you cooperate fully with Gold Star's counsel in defending against the action and (c) Gold Star retains ultimate control over the strategy involved in defending against and/or resolving the action. If Gold Star undertakes the defense or prosecution of any litigation pertaining to the right to use the Marks, you must execute all documents and do all acts and things as may be necessary, in the opinion of counsel for Gold Star, to carry out the defense or prosecution, whether the action is in the name of Gold Star, or in your name. Gold Star is not responsible for the cost of any independent legal counsel retained by you in any litigation. Except as set forth above, Gold Star will not be liable to you for any damages, costs, expenses, loss of profits or business opportunities, or incidental or consequential damages of any kind regarding or under any action or other matter involving the Marks. If you fail to meet any of your obligations described in this paragraph, Gold Star's obligations and warranties are void regarding the event at issue and Gold Star has no liability for costs incurred by or damages awarded against you.
Under the Franchise Agreement, you agree not to contest, directly or indirectly, or aid in contesting, the validity, ownership or enforceability of any Marks.
If it becomes advisable at any time in Gold Star's sole discretion for Gold Star and/or you to modify or discontinue use of any of the Marks, and/or to use one or more additional or substitute marks, names, logos or indicia, you must do so at your expense within a reasonable time after Gold Star so instructs you to do so in writing.
There are no superior prior rights or infringing uses actually known to Gold Star that could materially affect your use of the primary trademarks, service marks, names, logos and symbols licensed to, and to be used by, you to identify the Franchise business, in this state or any other state in which the Franchise business is to be located.
Item 14
Patents, Copyrights and Proprietary Information
Gold Star does not own any patents.
Gold Star asserts copyright protection for its Manual and other information and materials regarding Gold Star's System, which are not registered. You are not necessarily licensed to use these copyrights, but you are licensed to use the Manual and certain confidential information and materials during the term of the Franchise Agreement as part of the Confidential Material described in this Item 14.
Source: Item 13 — Trademarks (FDD pages 37–40)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, Gold Star retains the exclusive right to determine and undertake actions to prevent infringement of its marks. The FDD states that there are no agreements that significantly limit Gold Star's rights to use or license its trademarks in a manner material to the franchise. This means Gold Star maintains control over its brand identity and how it's used within the franchise system.
As a Gold Star franchisee, you are prohibited from contesting the validity, ownership, or enforceability of any of Gold Star's marks. If Gold Star deems it necessary to modify or discontinue the use of any marks, or to introduce new ones, you are obligated to comply at your own expense within a reasonable timeframe after receiving written instructions from Gold Star. This highlights the importance of adhering to Gold Star's brand standards and updates.
Gold Star also states that it is in the process of modernizing its trademarks and transitioning the system to use new marks. These new marks currently have "intent to use" applications filed with the United States Patent and Trademark Office, but do not yet have federal registration. If the right to use these marks is challenged, franchisees may have to change to an alternative trademark, which may increase expenses.
In the event of a third-party legal action challenging your right to use the marks, Gold Star may assume your defense and indemnify you against damages if you provide timely notice, cooperate fully with their counsel, and allow Gold Star to control the defense strategy. However, Gold Star is not responsible for the cost of any independent legal counsel you retain. Failing to meet these obligations voids Gold Star's warranties and releases them from liability for any costs or damages incurred by you.