What section of the Gold Star Franchise Agreement outlines the franchisee's obligations on termination or nonrenewal?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| i. Your obligations on termination/nonrenewal | Section 15 | Obligations include complete deidentification; payment of amounts due; return of proprietary and other confidential items, as well as all inventory and equipment bearing the Marks; transfer of phone listings and numbers; confidentiality obligations; indemnity obligations (also see (o) and (r), below) |
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, Item 17 outlines the provisions related to termination or nonrenewal of the franchise agreement. Specifically, Section 15 of the Franchise Agreement details the franchisee's obligations upon termination or nonrenewal.
These obligations include several key actions the franchisee must take. The franchisee is required to completely de-identify the restaurant, meaning removing all Gold Star branding and trademarks. They must also pay all outstanding amounts owed to Gold Star. Furthermore, the franchisee must return all proprietary and confidential items, as well as any inventory and equipment that bear Gold Star's marks.
In addition, the franchisee is obligated to transfer phone listings and numbers associated with the franchise to Gold Star. The confidentiality obligations outlined in the agreement remain in effect even after termination or nonrenewal. Finally, the franchisee must adhere to the indemnity obligations as specified in the agreement. Understanding these obligations is crucial for any prospective franchisee to be aware of their responsibilities when the franchise term ends.