Does Gold Star have the right to enter the Retail Location to make alterations after termination?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1.3 Unless FRANCHISEE receives written notice of the COMPANY's exercise of its options set forth in Section 15.2 below, after thirty (30) days have elapsed since the effective date of termination, FRANCHISEE shall immediately remove the Marks from all buildings, signs, fixtures and furnishings, and within thirty (30) days' after written notice from the COMPANY, alter and paint all structures and other improvements maintained pursuant to this Agreement a design and color which is basically different from the COMPANY's authorized building design and painting schedule and otherwise assist COMPANY in every way possible to bring about a complete and effective wind-down and de-identification of the Business. If FRANCHISEE shall fail to make or cause to be made any such removal, alteration or repainting, then the COMPANY shall have the right to enter upon the Retail Location, without being deemed guilty of trespass or any other tort or civil wrong, and make or cause to be made such removal, alterations and repainting at the reasonable expense of FRANCHISEE, which expense FRANCHISEE shall pay the COMPANY upon demand. FRANCHISEE shall not be deemed to have waived any rights which FRANCHISEE may have under any Franchise Law by reason
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star has specific rights regarding the retail location after the termination of the franchise agreement. If a franchisee fails to remove Gold Star's branding or alter the location's appearance to differentiate it from Gold Star's standards within a specified timeframe, Gold Star has the right to enter the retail location to perform these actions themselves. This includes removing marks, altering structures, and repainting the premises.
The cost for these alterations will be the responsibility of the franchisee, and Gold Star can demand payment for these expenses. This ensures that the location is properly de-identified to avoid confusion and protect Gold Star's brand integrity after a franchise agreement ends. The FDD also states that the franchisee does not waive any rights they may have under any Franchise Law.
Additionally, Exhibit B to the Franchise Agreement outlines lease provisions that further support Gold Star's rights. These provisions include allowing Gold Star to enter the retail location to de-identify the business without penalty, and granting Gold Star the right to make modifications necessary to protect the Marks or the System. These lease provisions are designed to ensure Gold Star can maintain control over its brand and system standards even after a franchise agreement terminates, and to protect their interests related to the leased property.