What must Gold Star specify in its written notice to the franchisee regarding the purchase option?

According to Gold Star's 2025 Franchise Disclosure Document, if Gold Star elects to exercise its option to purchase the Retail Location and any furnishings and equipment from the franchisee upon termination, expiration, or permanent closing of the Restaurant, Gold Star must provide written notice to the franchisee within thirty (30) days after such event.

The written notice must specify whether Gold Star will purchase the real property, the furnishings and equipment, or both. This means Gold Star has to clearly state in its notice exactly what assets it intends to buy from the franchisee – the real estate, the equipment, or everything.

This specification is important for the franchisee because it clarifies what they will be selling back to Gold Star. It allows the franchisee to prepare for the sale of those specific assets and understand what will be included in the valuation and transfer process. The purchase price for real property will be determined either by written agreement between Gold Star and the franchisee, or by two independent appraisers. The purchase price for any furnishing and equipment shall be the book value of such furnishings and equipment. Gold Star then has 30 days from the date the purchase price is determined to elect to purchase either the real estate or the furnishings and equipment, or both.