Can the terms of the renewed Gold Star franchise agreement differ from the original agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.1.7 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 may differ significantly from the original agreement. Specifically, when a franchisee exercises their option to renew, they will be required to execute Gold Star's then-current form of franchise agreement. This new agreement supersedes the original agreement upon its expiration.
The renewed franchise agreement may include materially different terms. These differences can include, but are not limited to, changes in the franchise agreement terms, higher continuing franchise fees, increased advertising expenditures, different fees or charges, a different term length, a different protected territory, altered renewal rights, and other varying terms.
Before renewal, Gold Star requires franchisees to meet several conditions, including satisfying all accrued monetary obligations, complying with the company's standards, completing required modernizations and renovations to the retail location, and ensuring that managers or operators complete any necessary training programs. Additionally, the franchisee must execute the then-current form of the franchise agreement and deliver the current renewal fee, which is in place of the initial franchise fee typically required under a new agreement. This ensures that franchisees are up-to-date with Gold Star's current standards and practices before continuing their franchise agreement.