To what extent must a Gold Star franchisee upgrade and update the POS System upon Gold Star's request?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
d processing. Hi-speed internet connection is required for credit cards, polling and the functionality of this system.
You must upgrade and update the POS System at any time upon Gold Star's request to the extent necessary to comply with Gold Star's standards and specifications. There are no contractual limitations on the frequency and cost of the obligation to upgrade or update the POS System.
The POS System will be used in your business to record customer transactions and transmit information to Gold Star. The POS System will collect and generate various types of business information or data, including financial information, menu item data, coupon data and other business data. Gold Star will have independent access to the information and data through your POS System. There are no contractual limitations on Gold Star's rights to access the information and data collected or generated by the POS System. Gold Star is not obligated to provide or assist you in obtaining the POS System or related services.
We currently lease the equipment for the POS System from a third party and require our Franchisees to sublease the POS System from us. The amount we charge you to sublease the equipment from us is equivalent to amount we pay to lease the equipment from the third party provider. Gold Star currently requires you pay a maintenance and technology fee for the POS System and its other technology requirements to our approved suppliers or Gold Star directly. This fee is for technology support and maintenance for your POS system as well as for the software and platforms used for training and scheduling, credit card backup, and online ordering. The total amount of mon
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees must upgrade and update their POS system whenever Gold Star requests it to comply with their standards. The FDD states that there are no contractual limitations regarding the frequency or cost of these upgrades.
The POS system is used to record customer transactions and send data to Gold Star, including financial information, menu item data, and coupon data. Gold Star has independent access to this information, and there are no contractual limitations on their access rights. Franchisees are responsible for the costs associated with these mandatory upgrades, which could impact their profitability if frequent or expensive upgrades are required.
Gold Star currently leases the POS system equipment from a third party and subleases it to franchisees. Franchisees also pay a monthly maintenance and technology fee ranging from $886 to $1,291 for technology support, software, training platforms, credit card backup, and online ordering. Franchisees must also purchase subscriptions to any applications or web services that Gold Star directs and maintain a functioning I-Pad at their retail location. This ongoing financial obligation for technology should be carefully considered by prospective franchisees.