Are there any third-party beneficiaries to the Gold Star franchise agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- **24.
NO THIRD PARTY BENEFICIARIES.** Nothing express or implied herein is intended or shall be construed to confer upon or give any person, firm or corporation, other than the parties hereto, any right or remedy hereunder or by reason hereof.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the franchise agreement does not confer any rights or remedies to third parties. This means that only Gold Star and the franchisee are parties to the agreement, and no other person, firm, or corporation can claim any benefits or legal recourse under it. This is a standard clause in franchise agreements to limit liability and ensure that only the parties directly involved in the agreement can enforce its terms.
This provision protects Gold Star from potential claims by individuals or entities who might assert they have rights under the franchise agreement. For example, suppliers, customers, or employees of the franchisee cannot claim any rights or remedies based on the franchise agreement. This helps to maintain a clear and direct relationship between Gold Star and its franchisees, simplifying legal and business matters.
For a prospective franchisee, this clause means they should not expect any third party to have the ability to enforce the franchise agreement on their behalf or against Gold Star. The franchisee is solely responsible for understanding and adhering to the terms of the agreement, and any disputes or issues must be resolved directly with Gold Star. This underscores the importance of carefully reviewing the franchise agreement and seeking independent legal advice to fully understand its implications.