Can Gold Star limit or affect profits, revenues, or income on sales or services to the franchisee?

According to the 2025 Gold Star Franchise Disclosure Document, Gold Star can affect a franchisee's profits, revenues, or income on sales or services. Specifically, the franchise agreement states that Gold Star has no obligation to share any discounts, rebates, commissions, fees, or other sums it receives from suppliers with the franchisee. Gold Star is entitled to earn or receive such benefits without any obligation to the franchisee. This means that Gold Star can negotiate favorable deals with suppliers and retain the resulting financial benefits, rather than passing them on to franchisees.

This arrangement is common in franchising, where franchisors often leverage their collective buying power to secure better deals with suppliers. However, it's important for prospective franchisees to understand that they may not directly benefit from these arrangements. The franchisee is not entitled to any share or participation in any discount, rebates, commission, fees or other sums that Gold Star may receive from suppliers, distributors, manufacturers, sales organizations or others supplying goods or services to Gold Star or the franchisee.

Furthermore, the agreement explicitly states that nothing within it should be interpreted as limiting or affecting the profits, revenues, or income that Gold Star or its affiliates may earn from sales or services to the franchisee. This clause reinforces Gold Star's right to set prices and terms for goods and services provided to franchisees, which can directly impact the franchisee's profitability. A prospective franchisee should consider how these factors might affect their potential earnings and discuss any concerns with Gold Star before signing the franchise agreement.