Which sections of the Gold Star Franchise Agreement outline franchisee obligations that survive termination or expiration?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 26. SURVIVAL OF TERMS AND CONDITIONS. The obligations of FRANCHISEE under Sections 11, 12, 16, and 19.3 hereof, and any other FRANCHISEE obligations herein that are stated to, or are of a type that would reasonably, survive or apply beyond termination or expiration of this Agreement, shall survive any termination or expiration of this Agreement; and expiration or termination of this Agreement shall be without prejudice to the rights of the COMPANY against FRANCHISEE thereunder and with respect to other like matters that reasonably would survive the end of a franchise relationship, and shall not relieve FRANCHISEE of any of FRANCHISEE's obligations to the COMPANY existing at the time of expiration or termination.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, Section 26 of the Franchise Agreement details the franchisee's obligations that extend beyond the termination or expiration of the agreement. Specifically, the obligations outlined in Sections 11, 12, 16, and 19.3, as well as any other obligations that are explicitly stated to survive or reasonably expected to apply after the agreement ends, remain in effect. This means that even after the franchise agreement concludes, certain responsibilities and duties of the franchisee to Gold Star continue.
This survival clause ensures that certain aspects of the franchise relationship, such as confidentiality, non-compete agreements, or payment obligations, do not simply disappear when the agreement terminates. It also clarifies that the termination or expiration of the agreement does not prejudice Gold Star's rights against the franchisee regarding matters that would reasonably survive the end of the franchise relationship. Furthermore, the franchisee remains responsible for any obligations to Gold Star that existed at the time of termination or expiration.
For a prospective Gold Star franchisee, this means carefully reviewing Sections 11, 12, 16, and 19.3 of the Franchise Agreement to understand the specific obligations that will continue even after the franchise term ends. It is also important to consider what other obligations might reasonably be expected to survive termination, as these will also remain in effect. Understanding these long-term responsibilities is crucial for making an informed decision about investing in a Gold Star franchise.