Is Gold Star required to share any discounts, rebates, or commissions received from suppliers with the franchisee?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.2 No Right to Discounts or Profits. Nothing contained in this Agreement shall be construed so as to limit or affect in any way whatsoever any profits, revenues or income the COMPANY or any of its affiliates or associates may earn or charge on sales or services to FRANCHISEE, nor shall it be construed so as to entitle FRANCHISEE to any share or participation in any discount, rebates, commission, fees or other sums that the COMPANY may receive from suppliers, distributors, manufacturers, sales organizations or others supplying goods or services to the COMPANY or FRANCHISEE, or judgments or damages awarded to the COMPANY of any kind whatsoever, and FRANCHISEE expressly acknowledges that the COMPANY may earn or receive such without any obligation therefor to FRANCHISEE.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are not entitled to any share of discounts, rebates, commissions, fees, or other sums that Gold Star receives from suppliers, distributors, manufacturers, sales organizations, or others providing goods or services. This also applies to any judgments or damages awarded to Gold Star.
This means that any financial benefits Gold Star negotiates with its suppliers or receives through other arrangements are retained solely by Gold Star. Franchisees should not expect to participate in these benefits, as Gold Star has no obligation to share them.
This policy is common in franchising, where the franchisor often leverages its system-wide purchasing power to negotiate favorable terms with suppliers. The franchisor typically keeps these benefits to support its own operations and profitability. A prospective Gold Star franchisee should be aware of this arrangement and factor it into their financial projections.