After termination or expiration of a Gold Star franchise, what is the geographic scope of the non-competition covenant?

According to Gold Star's 2025 Franchise Disclosure Document, if the franchise is terminated or expires, the franchisee is subject to a non-competition covenant. This covenant restricts the franchisee from engaging in a competing business for a period of 3 years. The geographic scope of this restriction extends to within 10 miles of the franchisee's Retail Location or any other existing or approved Gold Star franchise.

Additionally, the franchisee is prohibited from allowing any part of any owned or controlled premises in their Protected Territory to be used for any competing business for the same 3-year period. This means that even if the franchisee does not directly operate a competing business, they cannot lease or otherwise allow their property to be used by one within the specified area.

It is important to note that these non-competition covenants also apply after assignment of the franchise. Furthermore, all holders of an interest in the franchisee or the franchise must personally guarantee the obligations under the Franchise Agreement, including the non-compete provisions. Franchisees should also be aware that the laws of certain states may restrict Gold Star's rights regarding covenants not to compete, and consulting with a legal advisor is recommended to understand the specific state laws that may apply.