Are there any related agreements, in addition to the franchise agreement, that contain provisions about renewal, termination, transfer, and dispute resolution for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: Renewal, Termination, Transfer, and Dispute Resolution]
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| l. Gold Star’s approval of transfer by Franchisee | Section 13.4 and the Small Business Association Addendum if applicable | Gold Star has the right to approve all transfers (also see (n) below) |
| m. Conditions for Gold Star approval of transfer | Section 13.4 and the Small Business Association Addendum if applicable | Gold Star not obligated to approve any transfer--minimum conditions include: you are in good standing; new franchisee qualifies; transfer fee paid; purchase agreement approved; training arranged; release signed by you (and your shareholders and partners) and current agreement and related documents signed by new franchisee (also see (n) and (r), below); Under the Small Business Association Addendum, Gold Star may not unreasonably withhold, condition, or delay its consent. |
| o. Gold Star’s option to purchase your business | Sections 15.2 and 15.3 and the Small Business Association Addendum if Applicable | Gold Star has option to acquire Retail Location (or lease), equipment and furnishings upon termination or expiration of Franchise Agreement or permanent closing of Retail Location; Under the Small Business Association Addendum Gold Start does not have the right to acquire the Retail Location |
| p. Your death or disability (or that of any person having an interest in you or in the Franchise) | Section 13.8 and the Small Business Association Addendum if applicable | Franchise must be assigned by estate to approved buyer (and pursuant to transfer conditions) in 6 months (see (m), above); if Manager dies or becomes incapacitated and you do not have in place an acceptable successor Manager, Gold Star has the right to operate your Restaurant and charge you an operating fee during the interim period; Under the Small Business Association Addendum if applicable, Gold Star will operate the Restaurant for no more than a 90-day period of time |
[Item 17: Renewal, Termination, Transfer, and Dispute Resolution]
NOTES:
Note 1: All holders of an interest in you or in the Franchise must guarantee all of your obligations under the Franchise Agreement and agree to be bound personally by the confidentiality, noncompete and transfer provisions of the Franchise Agreement (see Section 17.2 of and Exhibit B to the Franchise Agreement).
Note 2: The laws of certain states may restrict Gold Star's rights under termination, renewal or assignment provisions, covenants not to compete or certain other provisions contained in the Franchise Agreement. You should consult with your own legal advisor regarding such state laws.
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 42–45)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, several sections within the Franchise Agreement, along with an addendum related to the Small Business Association (SBA), address renewal, termination, transfer, and dispute resolution.
Specifically, the Small Business Association Addendum impacts Gold Star's right to approve transfers, acquire the retail location, and operate the restaurant in the event of death or disability of the franchisee or manager. For instance, while Gold Star generally has the right to approve all transfers, the SBA Addendum stipulates that Gold Star may not unreasonably withhold, condition, or delay its consent. Similarly, while Gold Star typically has the option to purchase the retail location upon termination or expiration of the Franchise Agreement, this right is removed under the SBA Addendum. Furthermore, the period Gold Star can operate the restaurant due to the death or incapacitation of a manager is limited to 90 days under the SBA Addendum.
Additionally, all individuals holding an interest in the franchisee or the franchise must guarantee all obligations under the Franchise Agreement. They must also agree to be personally bound by the confidentiality, noncompete, and transfer provisions outlined in the agreement. It is important to note that state laws may also restrict Gold Star's rights concerning termination, renewal, assignment, and non-compete covenants, so consulting with a legal advisor is recommended.