Can Gold Star employees confer with a Gold Star franchisee's customers during an inspection?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The COMPANY's employees and agents shall have the right to enter upon the Retail Location at any reasonable time, whether or not FRANCHISEE is present and without prior notice, to inspect whether the Business is being conducted in accordance with this Agreement and the System Standards and to preserve and protect the validity and integrity of the Marks and System.
During such inspection, FRANCHISEE shall cooperate and shall cause its employees to cooperate with the COMPANY's employees and agents, who shall have the right to inspect the Retail Location and FRANCHISEE's books and records; observe the manner in which FRANCHISEE renders services and otherwise conducts operations; confer with FRANCHISEE's customers and employees, conduct, supervise or observe physical inventories or quality or other audits; and to select products and services for evaluation, including the right to remove samples of such products or ingredients thereof, without payment, in reasonable quantities as may be required by the COMPANY for testing.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star employees and agents have the right to confer with a franchisee's customers during an inspection of the Retail Location. This is part of the inspection process to ensure the business is being conducted according to the franchise agreement and System Standards. The inspection can occur at any reasonable time, with or without prior notice to the franchisee.
During these inspections, the franchisee and their employees are required to cooperate with Gold Star's employees and agents. Besides conferring with customers, Gold Star personnel can inspect the Retail Location, the franchisee's books and records, observe how services are rendered and operations are conducted, perform inventories or audits, and select products for evaluation.
This clause allows Gold Star to directly assess customer satisfaction and gather feedback on the quality of service and products. It also enables Gold Star to monitor adherence to System Standards from the customer's perspective, which is crucial for maintaining brand consistency and customer loyalty across all franchise locations. Franchisees should ensure their staff are aware of this possibility and trained to cooperate professionally during inspections.