Can Gold Star require franchisees to purchase, license, and use proprietary software programs developed for the system?

According to Gold Star's 2025 Franchise Disclosure Document, franchisees may be required to purchase, license, and use proprietary software programs developed for the Gold Star system. Specifically, Gold Star may develop or authorize others to develop proprietary software for use in the system, which franchisees may be required to purchase, license, and use in connection with their business operations. Franchisees must also agree to execute any license, sublicense, or maintenance agreement required by Gold Star or any other approved licensor or supplier of these proprietary software programs.

Gold Star franchisees are responsible for installing and maintaining a Communication and Information System, as specified in the manual or in writing. 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 remain the intellectual property of Gold Star.

Furthermore, franchisees must lease or purchase their Communication and Information System only from vendors or suppliers approved in writing by Gold Star. They are also responsible for paying any licensing or other fees required by these vendors or suppliers, including Gold Star if it is the approved supplier. Franchisees are prohibited from installing any devices, software, or other programs not approved by Gold Star for use with the Communication and Information System. If required by Gold Star, franchisees must maintain a contract with an approved supplier for software maintenance, support, and upgrade services.