Which sections of the Franchise Agreement are the Gold Star Manager bound by?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Manager must agree in writing to be bound individually by the confidentiality, noncompete and transfer restrictions of Sections 11, 12 and 14 of the Franchise Agreement.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 41–42)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a designated manager must agree in writing to be individually bound by specific sections of the Franchise Agreement. These sections include the confidentiality restrictions outlined in Section 11, the noncompete restrictions detailed in Section 12, and the transfer restrictions found in Section 14.
This requirement ensures that the manager, who is responsible for the restaurant's daily operations, is legally obligated to protect Gold Star's confidential information, refrain from competing with the franchise, and adhere to the established procedures for transferring ownership or control of the franchise. By binding the manager to these key provisions, Gold Star aims to safeguard its business interests and maintain consistent standards across all franchise locations.
For a prospective franchisee, this means that the individual they designate as manager must be willing to sign an agreement acknowledging their obligations under Sections 11, 12, and 14 of the Franchise Agreement. If the franchisee themselves act as the manager, they are already bound by these sections as part of their overall Franchise Agreement. It is important to carefully review these sections to fully understand the manager's responsibilities and potential liabilities.