Does Gold Star have the right of first refusal to acquire a Gold Star franchisee's business?

According to Gold Star's 2025 Franchise Disclosure Document, Gold Star does possess the right of first refusal to acquire a franchisee's business. Specifically, Gold Star can match any offer a franchisee receives from a third party who wishes to buy the business. This provision is detailed in Section 13.3 of the Franchise Agreement.

This right of first refusal means that if a Gold Star franchisee decides to sell their franchise, they must first offer Gold Star the opportunity to purchase the business on the same terms as any other legitimate offer. This gives Gold Star significant control over who becomes a new franchisee within their system. It allows Gold Star to maintain brand consistency and ensure that any new owner meets their standards.

For a prospective franchisee, this condition means that selling the franchise may involve an extra step. While they can find a buyer, Gold Star has the ultimate say in who the business is sold to. The franchisee cannot simply accept the highest offer; they must give Gold Star the chance to match it. This could potentially delay or complicate the sale process. However, it also ensures that Gold Star is invested in the continued success of the franchise location, even after a transfer of ownership.