Are Gold Star franchisees required to cooperate with Gold Star employees during inspections?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The COMPANY's employees and agents shall have the right to enter upon the Retail Location at any reasonable time, whether or not FRANCHISEE is present and without prior notice, to inspect whether the Business is being conducted in accordance with this Agreement and the System Standards and to preserve and protect the validity and integrity of the Marks and System.
During such inspection, FRANCHISEE shall cooperate and shall cause its employees to cooperate with the COMPANY's employees and agents, who shall have the right to inspect the Retail Location and FRANCHISEE's books and records; observe the manner in which FRANCHISEE renders services and otherwise conducts operations; confer with FRANCHISEE's customers and employees, conduct, supervise or observe physical inventories or quality or other audits; and to select products and services for evaluation, including the right to remove samples of such products or ingredients thereof, without payment, in reasonable quantities as may be required by the COMPANY for testing.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are required to cooperate during inspections conducted by Gold Star employees and agents. Specifically, the franchisee must ensure that their own employees also cooperate with Gold Star's representatives during these inspections.
These inspections, which can occur at any reasonable time without prior notice, are intended to verify that the business is being operated in accordance with the franchise agreement and Gold Star's System Standards. The scope of these inspections includes the right for Gold Star's representatives to inspect the retail location, the franchisee's books and records, observe operations, confer with customers and employees, conduct audits, and take product samples for evaluation.
This requirement ensures that Gold Star can effectively monitor and maintain the quality and consistency of its brand standards across all franchise locations. For a prospective franchisee, this means being prepared to allow and facilitate these inspections, ensuring both they and their employees are open to cooperating with Gold Star's representatives. Failure to cooperate could potentially lead to issues with the franchise agreement and the validity and integrity of the Gold Star brand.