factual

What happens if Gold Star develops proprietary software programs for use in the system?

Gold_Star Franchise · 2025 FDD

Answer 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.

Source: Item 23 — Receipts (FDD pages 53–163)

What This Means (2025 FDD)

According to Gold Star's 2025 Franchise Disclosure Document, if Gold Star develops proprietary software programs for use in its system, franchisees may be required to purchase, license, and use these programs in connection with their business operations. The franchisee will also be required to execute any license, sublicense, or maintenance agreement required by Gold Star or any approved licensor or supplier of these software programs.

Gold Star franchisees are required to install and maintain a Communication and Information System to ensure efficient management, data transmission, and operation of the business. This system includes a Point of Sale (POS) system designated by Gold Star, which transmits the franchisee's receipts to Gold Star daily. The database and programming used with the POS system are proprietary and confidential, remaining the intellectual property of Gold Star.

Franchisees must lease or purchase their Communication and Information System from vendors or suppliers approved in writing by Gold Star and pay any required licensing or other fees. They are prohibited from installing any unauthorized devices, software, or programs with 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. This ensures that all Gold Star locations operate on a uniform and up-to-date technology platform, maintaining consistency across the brand.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.