Which sections of the Gold Star Franchise Agreement cover inspections and audits?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Agreement | Disclosure Document Item |
|---|---|---|
| m. Maintenance, appearance and | Section 5 of Franchise Agreement | Item 8 |
| remodeling requirements | ||
| n. Insurance | Section 18 of Franchise Agreement | Item 8 |
| o. Advertising | Section 6 and 9 of Franchise Agreement; Supplier Payment Assignments | Items 6 and 11 |
| p. Indemnification | Section 19 of Franchise Agreement | Item 6 |
| q. Owner's | Section 5 of Franchise Agreement; | Items 11 and 15 |
| participation/management/ | ||
| staffing | ||
| r. Records/reports | Section 10 of Franchise Agreement | Item 6 |
| s. Inspections/audits | Sections 5, 8 and 10 of Franchise Agreement | Item 6 and 11 |
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, inspections and audits are addressed in Sections 5, 8, and 10 of the Franchise Agreement. This information is found in Item 11, which generally discusses the franchisor's assistance, advertising, computer systems, and training provided to franchisees.
Specifically, Gold Star conducts periodic inspections of a franchisee's restaurant and provides evaluations of their operations. This falls under Sections 5.7 and 5.8 of the Franchise Agreement. Additionally, the table in Item 11 provides a summary of obligations and their corresponding sections within the Franchise Agreement and relevant items in the Disclosure Document, further clarifying that inspections and audits are covered in Sections 5, 8, and 10.
For a prospective Gold Star franchisee, this means that the Franchise Agreement gives Gold Star the right to regularly inspect and audit their restaurant operations. These inspections and audits likely ensure compliance with Gold Star's standards, procedures, and financial reporting requirements. Understanding the specific details outlined in Sections 5, 8, and 10 of the Franchise Agreement is crucial for franchisees to be aware of their obligations and the scope of Gold Star's oversight.