What sections of the Gold Star Franchise Agreement discuss Gold Star's option to purchase the franchisee's business?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| o. Gold Star’s option to purchase your business | Sections 15.2 and 15.3 and the Small Business Association Addendum if Applicable | Gold Star has option to acquire Retail Location (or lease), equipment and furnishings upon termination or expiration of Franchise Agreement or permanent closing of Retail Location; Under the Small Business Association Addendum Gold Start does not have the right to acquire the Retail Location |
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 details provisions of the franchise agreement, including Gold Star's option to purchase a franchisee's business. Specifically, Sections 15.2 and 15.3 of the Franchise Agreement, along with the Small Business Association Addendum if applicable, outline Gold Star’s option to acquire the retail location (or lease), equipment, and furnishings upon the termination or expiration of the Franchise Agreement, or the permanent closing of the retail location.
However, the Small Business Association Addendum modifies this right, stating that Gold Star does not have the right to acquire the retail location if that addendum applies. This means that the applicability of these sections, and Gold Star's right to purchase the business, depends on whether the franchisee has a Small Business Association Addendum in their agreement.
A prospective franchisee should carefully review Sections 15.2 and 15.3 of the Franchise Agreement and any applicable addenda with their legal counsel to fully understand the conditions under which Gold Star may exercise its option to purchase the business. Understanding these conditions is crucial for making informed decisions about the long-term implications of the franchise agreement.