After termination, is a Gold Star franchisee allowed to use trademarks similar to those associated with the company?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
all have the right to enter upon the Retail Location, without being deemed guilty of trespass or any other tort or civil wrong, and make or cause to be made such removal, alterations and repainting at the reasonable expense of FRANCHISEE, which expense FRANCHISEE shall pay the COMPANY upon demand. FRANCHISEE shall not be deemed to have waived any rights which FRANCHISEE may have under any Franchise Law by reason
- of this Section 15.1.2. If FRANCHISEE receives written notice of the COMPANY's exercise of its options set forth in Section 15.2 below, the FRANCHISEE shall complete the foregoing requirements as reasonably directed by the COMPANY.
- 15.1.4 FRANCHISEE shall not thereafter use any trademark, trade name, logo, insignia, copyright, slogan, emblem, symbol, design, package design, distinctive building design or other architectural feature or other identifying characteristic that is in any way associated with the COMPANY or similar to or confusing with the Marks and those associated with the COMPANY, or use material bearing, or operate or do business under, any name or in any manner that might tend to give the public the impression that FRANCHISEE is or was a licensee or franchisee of, or otherwise is or was associated with the COMPANY.
- 15.1.5 The COMPANY may, in addition to and not in lieu of any other rights or remedies, retain all fees paid by FRANCHISEE pursuant hereto.
- 15.1.6 FRANCHISEE shall take such actions as shall be necessary to cancel any assumed name or equivalent registration which contains the Marks and shall furnish the COMPANY evidence satisfactory to the COMPANY of compliance with this obligation within forty-five (45) days after said termination.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are prohibited from using trademarks, trade names, logos, or any identifying characteristics associated with Gold Star after the termination of their franchise agreement. This includes anything similar to or confusing with the company's marks. This restriction ensures that former franchisees cannot mislead the public into thinking they are still affiliated with Gold Star.
Specifically, a franchisee cannot use any trademark, trade name, logo, insignia, copyright, slogan, emblem, symbol, design, package design, distinctive building design, or other architectural feature that is in any way associated with Gold Star or similar to the company's marks. They also cannot operate under any name or in any manner that might give the impression that they are or were a Gold Star franchisee.
To further ensure compliance, a former Gold Star franchisee must take necessary actions to cancel any assumed name or equivalent registration that contains the company's marks within 45 days of termination. They must also provide Gold Star with evidence of compliance. Additionally, the franchisee must deliver to Gold Star all proprietary products, secret recipes, supplies, and materials bearing the company's marks, as well as all confidential materials related to the business operation.
These post-termination obligations are designed to protect Gold Star's brand identity and prevent any confusion or misrepresentation in the marketplace. Franchisees should be aware of these restrictions and plan accordingly when exiting the franchise system.