What section of the Gold Star Franchise Agreement addresses the death or disability of the franchisee or a person with interest in the franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| p. Your death or disability (or that of any person having an interest in you or in the Franchise) | Section 13.8 and the Small Business Association Addendum if applicable | Franchise must be assigned by estate to approved buyer (and pursuant to transfer conditions) in 6 months (see (m), above); if Manager dies or becomes incapacitated and you do not have in place an acceptable successor Manager, Gold Star has the right to operate your Restaurant and charge you an operating fee during the interim period; Under the Small Business Association Addendum if applicable, Gold Star will operate the Restaurant for no more than a 90-day period of time |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 42–45)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Section 13.8 of the Franchise Agreement, along with the Small Business Association Addendum if applicable, addresses the death or disability of the franchisee or any person with interest in the franchise. In the event of death or disability, the franchise must be assigned by the estate to an approved buyer within 6 months, adhering to the standard transfer conditions.
If the manager of the Gold Star franchise dies or becomes incapacitated and an acceptable successor manager is not in place, Gold Star has the right to operate the restaurant during the interim period. During this time, the franchisee will be charged an operating fee.
However, if the Small Business Association Addendum applies, Gold Star will only operate the restaurant for a maximum of a 90-day period. This addendum provides a limit to the time Gold Star can manage the restaurant, offering some protection to the franchisee's interests in such circumstances.