Upon termination, what happens to the Gold Star franchisee's copy of the franchise agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 26. SURVIVAL OF TERMS AND CONDITIONS. The obligations of FRANCHISEE under Sections 11, 12, 16, and 19.3 hereof, and any other FRANCHISEE obligations herein that are stated to, or are of a type that would reasonably, survive or apply beyond termination or expiration of this Agreement, shall survive any termination or expiration of this Agreement; and expiration or termination of this Agreement shall be without prejudice to the rights of the COMPANY against FRANCHISEE thereunder and with respect to other like matters that reasonably would survive the end of a franchise relationship, and shall not relieve FRANCHISEE of any of FRANCHISEE's obligations to the COMPANY existing at the time of expiration or termination.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
The 2025 Gold Star Franchise Disclosure Document does not specify what happens to the franchisee's copy of the franchise agreement upon termination. However, the FDD does state that certain obligations of the franchisee survive the termination or expiration of the agreement.
Specifically, the obligations of the franchisee under Sections 11, 12, 16, and 19.3, as well as any other obligations that would reasonably survive termination, remain in effect. Termination or expiration of the agreement does not prejudice Gold Star's rights against the franchisee or relieve the franchisee of any obligations existing at the time of termination.
While the FDD does not explicitly address the disposition of the physical copy of the agreement, franchisees should be aware that their legal obligations to Gold Star continue even after the franchise agreement ends. Prospective franchisees should seek clarification from Gold Star regarding the handling of the franchise agreement copy and any related documents upon termination.