factual
Under what circumstances can the Gold Star company change the insurance requirements for franchisees?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.4 Changes to Insurance Requirements. The COMPANY shall have right to increase the minimum coverage, decrease the maximum deductible, or require different or additional kinds of insurance to reflect inflation, changes in standards of liability, higher damage awards, or other relevant changes in circumstances by providing written notice of such changes to FRANCHISEE at least thirty (30) days prior to enacting such requirement.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star has the right to modify the insurance requirements for its franchisees. Gold Star can increase the minimum coverage, decrease the maximum deductible, or require different or additional kinds of insurance.
These changes can be made to reflect factors such as inflation, changes in liability standards, higher damage awards, or other relevant changes in circumstances.
Gold Star must provide written notice to the franchisee at least thirty (30) days before implementing any such changes to the insurance requirements. This advance notice allows the franchisee time to adjust their insurance policies accordingly.
Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only.
It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.