Under what conditions is Gold Star not responsible for the cost of a franchisee's legal counsel?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to Section 6.8, above, FRANCHISEE shall be entitled to retain independent legal counsel, provided that the COMPANY shall not be responsible for the cost of any such legal counsel.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are entitled to retain independent legal counsel. However, Gold Star is not responsible for covering the costs associated with this legal counsel. This means that while franchisees have the freedom to seek legal advice, they must bear the financial burden of those services themselves.
This policy is fairly standard in the franchise industry. Franchise agreements are complex legal documents, and Gold Star encourages franchisees to seek independent advice to fully understand their rights and obligations. However, Gold Star does not assume responsibility for these costs.
Prospective franchisees should factor in the potential expense of hiring legal counsel when evaluating the overall cost of investing in a Gold Star franchise. It is advisable to consult with an attorney experienced in franchise law to review the Franchise Agreement and related documents before making a final decision.