Who has the right to determine actions to protect the Gold Star Marks?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The COMPANY agrees to take whatever actions it deems reasonably necessary to protect the Marks and the goodwill associated therewith.
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 Gold Star's 2025 Franchise Disclosure Document, Gold Star retains the exclusive right to determine and undertake actions to protect its marks. The FDD states that Gold Star will decide what actions are appropriate to prevent infringement of the marks or any damage to the goodwill associated with those marks.
This means that as a Gold Star franchisee, you do not have the authority to independently take legal or other actions to protect the Gold Star trademarks. Instead, you are obligated to promptly notify Gold Star of any potential infringement or misuse of the marks. Gold Star then has the sole discretion to decide how to respond, if at all.
If a third party sues a franchisee over the use of Gold Star's marks, Gold Star has the option to assume the defense of the franchisee. If Gold Star does take over the defense, it has ultimate control over the legal strategy. Franchisees are required to cooperate with Gold Star in any litigation related to the marks, including executing documents and performing actions deemed necessary by Gold Star's counsel. While franchisees can retain their own legal counsel, Gold Star is not responsible for those costs.