If Gold Star requires access to an extranet, what is the franchisee required to do?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.11 Extranet. The COMPANY will have the right, but not the obligation, to establish a website or other electronic system providing private and secure communications (e.g., an extranet) between the COMPANY, FRANCHISEE, other franchisees, and other persons and entities as determined by the COMPANY, in its sole discretion. If required by the COMPANY, FRANCHISEE will establish and maintain access to the extranet in the manner specified by the COMPANY, including without limitation, downloading and subscribing to third-party software, and will from time to time execute such agreements and/or acknowledge and agree to comply with such policies concerning the use of the extranet as the COMPANY may prepare.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, while Gold Star has the right, but not the obligation, to establish an extranet for communication, if they do require it, franchisees must establish and maintain access to it. This includes following Gold Star's specified manner, such as downloading and subscribing to third-party software. Franchisees must also execute agreements and comply with policies regarding the extranet's use as prepared by Gold Star.
This means that if Gold Star implements an extranet system, franchisees will be required to invest time and potentially money to set up and maintain access. This could involve purchasing specific software, hardware, or internet services as dictated by Gold Star. The franchisee will also need to stay informed about and adhere to any policies or agreements related to the extranet, ensuring they use it in accordance with Gold Star's guidelines.
It is important for prospective franchisees to understand that these requirements are subject to change, as Gold Star has the discretion to modify the extranet's specifications and usage policies. Therefore, franchisees should budget for potential technology-related expenses and be prepared to adapt to new communication protocols as Gold Star updates its systems. This is a fairly standard practice in franchising, as franchisors often implement technology solutions to streamline communication and ensure brand consistency across all locations.