Does Gold Star retain the right to determine actions to protect the Marks in its sole discretion?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The COMPANY retains the exclusive right, in its sole discretion exercised in good faith, to determine and undertake such actions, if any,
- as it deems appropriate to prevent the infringement of the Marks or the diminution of the goodwill in the Marks.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, Gold Star retains the exclusive right to determine actions to protect its marks. Gold Star has the sole discretion, exercised in good faith, to determine and undertake actions it deems appropriate to prevent the infringement of the Marks or the diminution of the goodwill in the Marks. This means Gold Star has control over how the brand and its associated goodwill are protected.
If it becomes advisable at any time in Gold Star's sole discretion to modify or discontinue use of any of the Marks, franchisees agree to do so at their expense within a reasonable time after Gold Star instructs them in writing. Franchisees cannot use any marks, signs, symbols, or other identifying characteristics in connection with the Business other than the Marks, without Gold Star's prior written consent, which shall be in Gold Star's sole discretion.
Gold Star warrants and represents that it has rights to license the Marks to franchisees and that such use will not infringe on the rights of others. Franchisees must advise Gold Star promptly in writing of any potentially infringing uses of the Marks. If a third party commences a legal action against a franchisee challenging the franchisee's right to use the Marks, Gold Star may, in its sole discretion, assume the defense of the franchisee.