Are there any exceptions to the one-year limitation of claims for Gold Star franchisees?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.6 Limitation of Claims.
Except for: (i) claims against FRANCHISEE concerning the underreporting of Gross Sales and corresponding underpayment of continuing franchise and Brand Building Fees, (ii) claims against FRANCHISEE by The COMPANY relating to third party claims or suits brought against The COMPANY as a result FRANCHISEE's operation of the Store, (iii) claims for injunctive relief to enforce the provisions of this Agreement relating to FRANCHISEE's use of the Marks, (iv) claims against FRANCHISEE by The COMPANY for injunctive relief relating to FRANCHISEE's financial obligations upon the termination or expiration of this Agreement, (v) claims against FRANCHISEE by The COMPANY concerning FRANCHISEE's obligations under Articles 11 or 12 of this Agreement, and (vi) claims against FRANCHISEE by The COMPANY regarding an assignment of this Agreement or any ownership interests therein, any and all claims arising out of or relating to this Agreement or the relationship between the parties will be barred unless an action is commenced within one year from the date FRANCHISEE or The COMPANY knew or should have known of the facts giving rise to such claims.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, there are several exceptions to the one-year limitation of claims. Generally, any claims arising out of the franchise agreement or the relationship between Gold Star and the franchisee must be brought within one year from when the franchisee or Gold Star knew or should have known about the facts giving rise to the claim. However, this limitation does not apply to certain specific claims.
The exceptions to this one-year limitation period include claims by Gold Star against the franchisee for underreporting of gross sales and underpayment of continuing franchise and brand building fees. It also includes claims against the franchisee relating to third-party claims or suits brought against Gold Star as a result of the franchisee's store operation. Additionally, the limitation does not apply to claims for injunctive relief to enforce provisions related to the franchisee's use of Gold Star's marks, or for injunctive relief related to the franchisee's financial obligations upon termination or expiration of the agreement.
Furthermore, claims against the franchisee regarding their obligations under Articles 11 or 12 of the agreement, and claims regarding an assignment of the agreement or any ownership interests, are also exempt from the one-year limitation. This means Gold Star has more than one year to bring these specific types of claims against a franchisee, which provides Gold Star with extended protection in these critical areas of the franchise relationship.