Under what circumstances does Section 6.7 not apply regarding a Gold Star Franchise Agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 6.7 notwithstanding, if FRANCHISEE fails to meet its obligations under Sections 6.8 and 6.9 with respect to any particular event, the COMPANY's warranties and obligations under Sections 6.7 and 6.8 shall become void with respect to such particular event, and the COMPANY shall have no liability for costs incurred or damages awarded against FRANCHISEE. EXCEPT AS SPECIFICALLY SET FORTH IN SECTION 6.8, ABOVE, THE COMPANY SHALL NOT BE LIABLE TO FRANCHISEE FOR ANY DAMAGES, COSTS, OR EXPENSES WHATSOEVER, INCLUDING BUT NOT LIMITED TO, ANY LOSS OF PROFITS OR BUSINESS OPPORTUNITIES, OR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER RELATING TO ANY ACTION OR OTHER MATTER INVOLVING THE MARKS OR GOODWILL ASSOCIATED THEREWITH.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Section 6.7 of the Franchise Agreement does not apply if a franchisee fails to meet its obligations under Sections 6.8 and 6.9 with respect to any particular event. In such cases, Gold Star's warranties and obligations under Sections 6.7 and 6.8 become void for that specific event. Consequently, Gold Star will not be liable for any costs incurred or damages awarded against the franchisee.
Furthermore, the document specifies that, except as detailed in Section 6.8, Gold Star is not liable to the franchisee for any damages, costs, or expenses. This includes, but is not limited to, any loss of profits or business opportunities, or incidental or consequential damages of any kind related to any action or matter involving the marks or goodwill associated with Gold Star.
This means that as a Gold Star franchisee, it is crucial to adhere to the obligations outlined in Sections 6.8 and 6.9 to ensure that Gold Star's warranties and obligations remain in effect. Failure to comply with these sections could result in the franchisee bearing the full financial burden of any costs or damages arising from specific events, as well as forfeiting any claims against Gold Star for losses related to the brand's trademarks or associated goodwill.