Is a Gold Star franchisee required to execute any license, sublicense, or maintenance agreement for proprietary software?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
7.8.6 FRANCHISEE will have the sole and complete responsibility for the manner in which FRANCHISEE's Communication and Information System interfaces with other systems, including those of the COMPANY and other third parties, as well as any and all consequences that may arise if FRANCHISEE's Communication and Information System is not properly operated, maintained, and upgraded.
7.8.7 FRANCHISEE will: (a) promptly enter into its Communication and Information System and maintain all information required to be entered and maintained by the COMPANY; (b) provide to the COMPANY such reports as the COMPANY may reasonably request from the data so collected and maintained; and (c) permit the COMPANY to access FRANCHISEE's Communication and Information System at all times via modem or other means specified by the COMPANY from time to time.
FRANCHISEE will cooperate with the COMPANY, and will execute all documents required by the COMPANY to permit access to FRANCHISEE's Communication and Information System and data contained therein.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees may be required to execute license, sublicense, or maintenance agreements for proprietary software. Specifically, Gold Star may develop or authorize others to develop proprietary software programs for use in the system, which franchisees may be required to purchase, license, and use in connection with the operation of their business.
Gold Star franchisees agree that they will execute any license, sublicense, or maintenance agreement required by Gold Star or any other approved licensor or approved supplier of such proprietary software programs. Furthermore, if required by Gold Star, franchisees must obtain and maintain a contract with a supplier approved by Gold Star in writing for software maintenance, support, and upgrade services for the franchisee's Communication and Information System. This ensures franchisees receive the necessary assistance for their systems.
Gold Star may be one of, or the only, approved supplier for these services. If franchisees obtain these services directly from Gold Star, they agree to pay the maintenance fee specified by Gold Star. Alternatively, Gold Star may permit franchisees to contract with a third party, who in turn remits a portion of their fees to Gold Star. However, Gold Star is not obligated to provide any services or support for the hardware or software used in the Communication and Information System.
Franchisees are also responsible for upgrading and updating their Communication and Information System as specified by Gold Star in the manual or in writing. They have complete responsibility for how their Communication and Information System interfaces with other systems, including those of Gold Star and third parties, and for any consequences arising from improper operation, maintenance, or upgrades. Franchisees must also enter and maintain all required information in their Communication and Information System, provide requested reports to Gold Star, and permit Gold Star to access their system at all times.