Upon termination or nonrenewal of the Gold Star franchise agreement, what obligations does the franchisee have?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| i. Your obligations on termination/nonrenewal | Section 15 | Obligations include complete deidentification; payment of amounts due; return of proprietary and other confidential items, as well as all inventory and equipment bearing the Marks; transfer of phone listings and numbers; confidentiality obligations; indemnity obligations (also see (o) and (r), below) |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 42–45)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, franchisees have several obligations upon termination or nonrenewal of their franchise agreement. These obligations are detailed in Section 15 of the franchise agreement.
Upon termination or nonrenewal, a franchisee must completely de-identify the business, which means removing all Gold Star branding and signage. The franchisee is also required to pay all outstanding amounts owed to Gold Star. Additionally, franchisees must return all proprietary and confidential items, including inventory and equipment that bear Gold Star's trademarks.
Further, the franchisee is obligated to transfer phone listings and numbers to Gold Star. The confidentiality obligations outlined in the franchise agreement remain in effect, and the franchisee must continue to adhere to the indemnity obligations. These combined requirements ensure a clean break between the franchisee and the Gold Star system, protecting Gold Star's brand and proprietary information.