Can a Gold Star franchisee charge prices that do not conform to Gold Star's recommended prices?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.8 Pricing.
The COMPANY may, from time to time, recommend or suggest prices to FRANCHISEE for the Products sold or offered at the Store.
FRANCHISEE is under no obligation to accept any such recommendation or suggestion.
FRANCHISEE is, and shall be at all times, free to charge prices entirely of its own choosing, regardless of whether the same do or do not conform to the recommended or suggested prices.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, franchisees have the freedom to set their own prices. While Gold Star may suggest prices for products sold at the store, franchisees are not obligated to follow these recommendations. Franchisees can choose prices that differ from those suggested by Gold Star. This flexibility allows franchisees to respond to local market conditions and competitive pressures.
This pricing autonomy is a significant benefit for prospective franchisees. It enables them to adjust prices to maximize profitability within their specific geographic area. For example, a franchisee in a high-cost urban area might need to charge higher prices than a franchisee in a rural location. The ability to set prices independently allows franchisees to tailor their business strategy to their local market.
However, franchisees must adhere to Gold Star's standards regarding the store's appearance, quality, and design. Any changes to the store require prior written approval from Gold Star. This ensures that all locations maintain a consistent brand image and meet the company's standards. While franchisees have pricing flexibility, they must still operate within the established framework of the Gold Star system.