Can the term of the Gold Star franchise agreement be shorter than 10 years?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The term of this Agreement and the franchise granted herein shall be for a term of ten (10) years, or, if less, the term of the lease for the Retail Location (the term is set forth on the cover page of this Agreement) or until otherwise terminated as hereinafter provided; provided FRANCHISEE has secured, and continues to secure, by ownership or lease, the Retail Location for the same term.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the franchise agreement's term is typically 10 years. However, the term can be shorter if the lease for the retail location is less than 10 years. In this case, the franchise agreement will last only as long as the lease, provided the franchisee maintains control of the retail location through ownership or lease for the same duration.
This is an important consideration for prospective Gold Star franchisees because the length of the lease they secure for their restaurant location directly impacts the length of their franchise agreement. If a franchisee can only secure a lease for five years, their franchise agreement will also only be for five years, rather than the standard ten.
This condition protects both Gold Star and the franchisee. Gold Star ensures that the restaurant has a secure location for the duration of the franchise agreement, while the franchisee isn't bound to a franchise agreement longer than their right to occupy the premises. Franchisees should carefully consider lease terms when negotiating with landlords to align with their long-term business goals with Gold Star.