Which state's laws govern the Gold Star Franchise Agreement?

According to Gold Star's 2025 Franchise Disclosure Document, the Franchise Agreement is governed by Ohio law. Specifically, Section 22.1 of the agreement stipulates that Ohio law applies to the agreement. This means that any legal disputes or interpretations of the contract will be subject to Ohio's legal statutes and precedents.

This is a fairly standard practice in franchising, where the franchisor typically designates a specific state's laws to govern the franchise agreement. This provides clarity and consistency in legal matters. However, it's important to note that while Ohio law governs the agreement, Note 2 in Item 17 of the FDD states that the laws of certain states may restrict Gold Star's rights under termination, renewal, assignment, non-compete clauses, or other provisions. Therefore, franchisees should consult with their own legal advisor regarding such state laws, as these may provide additional protections or impose further restrictions.

For a prospective Gold Star franchisee, this means that while the core agreement is based on Ohio law, they need to be aware of how their own state's laws might impact specific clauses within the agreement. This is particularly relevant for issues like termination, renewal, and non-compete obligations, where state laws can vary significantly. Understanding these potential conflicts and restrictions is crucial for making informed decisions and protecting their interests as a franchisee.