For how long must a Gold Star franchisee preserve their Business Records?

According to Gold Star's 2025 Franchise Disclosure Document, franchisees are required to maintain all Business Records for a minimum of five years. However, this retention period may be longer if required by law. Business Records include sales data, tax returns, and other documents related to the business's financial transactions.

This requirement ensures that Gold Star franchisees comply with financial and legal standards. It also allows Gold Star to audit the franchisee's records to verify the accuracy of reported gross sales. If an audit reveals an understatement of gross sales by 2% or more for any reporting period, the franchisee is responsible for covering the costs of the audit.

Maintaining accurate and accessible records is a standard practice in franchising. Prospective Gold Star franchisees should be aware of this obligation and ensure they have systems in place to properly manage and store their Business Records for the required duration. This includes both physical and electronic records, as specified in the Gold Star operations manual.