Under what circumstances do Gold Star's warranties and obligations become void?
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.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company's warranties and obligations may become void if a franchisee fails to meet their obligations under Sections 6.8 and 6.9 of the franchise agreement. This failure applies specifically to the event in question, meaning Gold Star's responsibilities are nullified only for that particular instance.
This provision means that if a franchisee doesn't fulfill their duties as outlined in those sections, Gold Star is not liable for any costs or damages the franchisee incurs. It is important for prospective franchisees to understand what Sections 6.8 and 6.9 cover to avoid unintentionally voiding Gold Star's warranties and obligations.
This type of clause is not uncommon in franchise agreements, as franchisors often protect themselves from liabilities arising from a franchisee's failure to adhere to the agreement's terms. Therefore, a prospective Gold Star franchisee should carefully review Sections 6.8 and 6.9 of the franchise agreement and seek legal counsel to fully understand their obligations and the potential consequences of non-compliance.