Does the Gold Star franchise agreement specify if the franchisee must purchase or lease the Communication and Information System?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.8.2 FRANCHISEE will lease and/or purchase its Communication and Information System only from such vendor or vendors or supplier that the COMPANY has approved in writing pursuant to the provisions of Section 7.2 above and will pay any licensing or other fees required by vendors or suppliers, including without limitation, the COMPANY if the COMPANY is the approved supplier therefor. FRANCHISEE will not install, or permit to be installed, any devices, software or other programs not approved by the COMPANY for use with the Communication and Information System.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees have the option to either lease or purchase the Communication and Information System. The agreement specifies that the franchisee must acquire the Communication and Information System from a vendor or supplier that Gold Star has approved in writing.
This system, as defined in the franchise agreement, includes a point-of-sale (POS) system, hardware (such as computers and tablets), software and platforms for managing the business, reporting, sharing information with Gold Star, credit card backup systems, online ordering, training platforms, and communication systems like modems, satellite, cable, wifi, and internet systems.
The agreement also states that Gold Star may develop or authorize proprietary software programs for use within the system, which franchisees may be required to purchase, license, and use. Furthermore, Gold Star may require franchisees to maintain a contract with an approved supplier for software maintenance, support, and upgrade services for the Communication and Information System.