Can the term of the renewed Gold Star franchise agreement be different from the original agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Within thirty (30) days of receipt thereof, FRANCHISEE executes the COMPANY's then current form of franchise agreement and all other documents, agreements and instruments then customarily used by the COMPANY in granting Restaurant franchises, which agreement shall supersede this Agreement upon the expiration of this Agreement.
The terms of such new franchise agreement may differ materially from those in this Agreement, including but not limited to the terms of the franchise agreement, higher continuing franchise fees, higher advertising expenditures, higher fees or charges of other types, a different term,
- different Protected Territory, different renewal rights and other different terms of any kind whatsoever); and
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the terms of the new franchise agreement at the time of renewal may differ materially from the original agreement. This includes the possibility of a different term length for the franchise agreement.
To renew the franchise, a franchisee must execute Gold Star's then-current form of franchise agreement. This agreement supersedes the original agreement upon its expiration. The new agreement could include higher continuing franchise fees, increased advertising expenditures, different fees or charges, a different protected territory, and altered renewal rights, among other changes.
While the standard renewal term is for one additional term of ten years, the cover page of the original agreement may specify a different number of renewal terms or a different length for those terms. If the cover page terms conflict with the standard ten-year renewal term, the cover page terms will take precedence. However, the then-current franchise agreement must not contain provisions for any renewal term.
Prospective franchisees should carefully review the initial franchise agreement and any renewal agreements presented by Gold Star to understand the potential changes in terms and conditions. It is important to note that the terms can change and that the franchisee will be subject to the then-current agreement at the time of renewal.