Which section of the Gold Star Franchise Agreement outlines non-competition covenants?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
n these agreements and in other items of this Disclosure Document.**
| Obligation | Section in Agreement | Disclosure Document Item |
|---|---|---|
| a. |
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, the non-competition covenants are detailed in Section 11 of the Franchise Agreement. This section is further referenced in Item 17 of the same document.
Non-competition covenants are standard in franchising to protect the brand and prevent franchisees from using the franchisor's proprietary information and systems to compete against the franchise, either during the franchise term or after its termination. These covenants typically restrict a franchisee's ability to operate a similar business within a certain geographic area and for a specific period of time.
A prospective Gold Star franchisee should carefully review Section 11 and Item 17 of the Franchise Agreement to fully understand the scope and limitations of these non-competition covenants. Understanding these restrictions is crucial for planning future business activities, especially if the franchisee decides to exit the Gold Star system.