What rights does Gold Star have if the franchisee defaults on the franchise agreement?

he purchase of assets under Section 15.2 above.

• 15.4 No Right to Use Marks. As agreed to in Section 6 of this Agreement, all rights to any Marks, patents and copyrights licensed hereunder belong to the COMPANY exclusively, and upon expiration or termination of this Agreement, the COMPANY may, if FRANCHISEE does not do so, execute in FRANCHISEE's name, at FRANCHISEE's expense and on FRANCHISEE's behalf any and all documents necessary to end and cause the discontinuance immediately of FRANCHISEE's use of or right to use the Marks, patents and copyrights and the COMPANY is hereby irrevocably appointed and designated as FRANCHISEE's attorney-in-fact to do so.

• 15.5 Right of Entry; Appointment of Receiver. If FRANCHISEE is in default under the terms of this Agreement, in addition to the COMPANY's right to terminate this Agreement, and without limiting any other rights or remedies to which the COMPANY may be entitled at law or in equity, the COMPANY will have the right to take any of the following actions:
  • 15.5.1 enter upon the premises of the Franchised Restaurant and exercise complete authority with respect to the operation of the Store until such time as the COMPANY determines, in its sole discretion, that FRANCHISEE has cured the default and that there is compliance with the terms of this Agreement; and FRANCHISEE agrees that a designated representative of the COMPANY may operate and control the Store, and that FRANCHISEE will pay the COMPANY for its labor costs, travel expenses, lodging and other expenses reasonably incurred by the - COMPANY in sending a representative to enforce compliance with the terms of this Agreement; or
  • 15.5.2 petition any court of competent jurisdiction to appoint a receiver for the business or assets of FRANCHISEE, and FRANCHISEE agrees that it will not contest any proceeding or petition for the appointment of a receiver.
• 15.6 Liquidated Damages. If FRANCHISEE abandons or discontinues the franchise for any reason prior to the expiration of the term of this Agreement, FRANCHISEE will pay to the COMPANY as liquidated damages and not as a penalty, and in addition to but not in limitation of any other rights and remedies to which the COMPANY is entitled, an amount equal to the average monthly continuing franchise fee payments due from FRANCHISEE during the twelve months preceding the abandonment or discontinuance of the franchise, multiplied by the lesser of twenty-four or the number of months remaining in the term of this Agreement.

16. RENEWAL.

16.1 Renewal Option. Except where applicable state law provides otherwise, FRANCHISEE, unless the franchise is terminated as herein otherwise provided, shall have the option at the expiration of the term of this Agreement to renew the franchise granted hereunder by executing the COMPANY's then-current form of franchise agreement for one additional term of ten (10) years unless a different number of renewal terms and/or a different length of such term(s) are set forth on the cover page of this Agreement, which if applicable, the cover page terms shall prevail over the conflicting terms of this section 16 (provided that the COMPANY is then still offering franchises for Restaurants using the Marks and the System and provided that such form of franchise agreement shall not contain provisions for any renewal term):

• 16.1.1 FRANCHISEE gives the COMPANY written notice of its election to renew not less than six (6) months nor more than nine (9) months prior to the expiration of the term of this Agreement and satisfies all other conditions set forth herein at the earlier of the times required or the date of expiration of this Agreement;
• 16.1.2 FRANCHISEE has secured the premises for the Retail Location by ownership or lease (satisfactory to the COMPANY) for the renewal term;

Source: Item 23 — Receipts (FDD pages 53–163)