What section of the Gold Star Franchise Agreement discusses Gold Star's right to assign the contract?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| j. Assignment of contract | Section 13.1 | No restriction on Gold Star's right to assign |
| by Gold Star |
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 13.1 of the Franchise Agreement outlines the company's rights regarding the assignment of the contract. Specifically, this section indicates that there are no restrictions on Gold Star's ability to assign the franchise agreement to another party.
This is a standard clause in most franchise agreements, allowing the franchisor flexibility in managing its business and potentially transferring its rights and obligations to another entity. For a prospective franchisee, this means that the agreement they sign with Gold Star could be transferred to a new franchisor during the term of the agreement.
While Gold Star has the right to assign the contract, the FDD does not specify the conditions under which Gold Star might choose to do so. A potential franchisee should inquire about the circumstances that could lead to such an assignment and what protections, if any, the franchisee would have in such a scenario.