When must a Gold Star franchisee install the Communication and Information System?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.8 Point-of-Sale System; Communication and Information System. To ensure the efficient management and operation of the Business and the transmission of data to and from the COMPANY, FRANCHISEE, at its own expense, will install, prior to opening the Store, and will maintain and utilize during the term of this Agreement, such Communication and Information System as may be specified in the Manual or otherwise in writing from time to time. FRANCHISEE will use a Point of Sale (POS) system designated by the COMPANY, which system will transmit FRANCHISEE's receipts to the COMPANY on a daily basis. The database and programming that is used with the Point of Sale system is proprietary and confidential and remains the intellectual property of the COMPANY.
- 7.8.1 As used in this Agreement, the term "Communication and Information System" will mean: a point of sale system; hardware (including, without limitation, one or more computers and/or tablets as well as other computer and/or tablet components); software and platforms designed for the management and operation of the Business, as well as reporting and sharing information with the COMPANY (including credit card backup systems, and online ordering and training platforms); and communication systems (including, without limitation, digital or analog modems, satellite, cable, wifi, internet and other systems).
- 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.
- 7.8.3 The COMPANY may from time to time develop or authorize others to develop proprietary software programs for use in the System, which FRANCHISEE may be required to purchase, license and use in connection with the operation of the Business. FRANCHISEE agrees that it will execute any license, sublicense, or maintenance agreement required by the
COMPANY or any other approved licensor or approved supplier of such proprietary software programs.
7.8.4 If required by the COMPANY, FRANCHISEE will obtain and maintain a contract with a supplier that the COMPANY has approved in writing for software maintenance, support, and upgrade services for FRANCHISEE's Communication and Information System and to provide FRANCHISEE with such assistance as FRANCHISEE and FRANCHISEE's employees may require.
FRANCHISEE acknowledges that (a) the COMPANY may be one of, or the only, approved supplier for such services, and if FRANCHISEE obtains these services from the COMPANY, then FRANCHISEE agrees that it will pay to the COMPANY the maintenance fee specified by the COMPANY for such services and (b) the COMPANY may only permit FRANCHISEE to enter into such contract with a thirdparty who remits a portion of its fees to the COMPANY.
Notwithstanding these rights of the COMPANY, the COMPANY will not at any time be obligated to provide any such services or support for the hardware or software used in the Communication and Information System.
- 7.8.5 FRANCHISEE will upgrade and update its Communication and Information System in the manner, and at the time, specified by the COMPANY in the Manual or otherwise in writing.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee must install the Communication and Information System before opening their store. The franchisee is responsible for the expense of the installation, maintenance, and utilization of the Communication and Information System throughout the term of the Franchise Agreement. This system is specified in the Manual or in writing by Gold Star from time to time.
The Communication and Information System includes a point-of-sale system, hardware (such as computers or tablets), software and platforms for managing the business, reporting, sharing information with Gold Star, credit card backup systems, and online ordering and training platforms. It also encompasses communication systems like modems, satellite, cable, wifi, internet, and other systems. The franchisee must lease or purchase the Communication and Information System only from vendors or suppliers approved in writing by Gold Star and pay any required licensing or other fees.
Gold Star may develop or authorize proprietary software programs for use within the system, which the franchisee may be required to purchase, license, and use. Additionally, if required by Gold Star, the franchisee must maintain a contract with an approved supplier for software maintenance, support, and upgrade services for the Communication and Information System. The franchisee is also responsible for upgrading and updating their Communication and Information System as specified by Gold Star in the Manual or in writing.