Who has the right to determine and undertake actions to protect the Gold Star Marks?

According to Gold Star's 2025 Franchise Disclosure Document, Gold Star retains the exclusive right to determine and undertake actions to protect its marks. Gold Star has the authority to take actions it deems appropriate to prevent the infringement of the marks or the diminution of the goodwill in the marks.

If a third party initiates legal action against the franchisee, challenging their right to use the Gold Star marks, Gold Star has the option to assume the defense of the franchisee. In this case, Gold Star will utilize counsel of its choosing. Gold Star also agrees to indemnify the franchisee against all damages for infringement that the franchisee is held liable for in such action resulting from the franchisee's authorized use of the marks, provided the franchisee adheres to certain conditions.

The franchisee must provide timely notice of the action, fully cooperate with Gold Star's counsel in defending against the action, and allow Gold Star to retain 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, the franchisee must execute all necessary documents and actions as deemed necessary by Gold Star's counsel to carry out such defense or prosecution.

If the franchisee fails to meet their obligations regarding notice and cooperation, Gold Star's warranties and obligations become void, and Gold Star will not be liable for costs incurred or damages awarded against the franchisee. Except as specifically outlined, Gold Star is not liable to the franchisee for any damages, costs, or expenses relating to any action involving the marks or goodwill associated with them.