From which source will Gold Star obtain a franchisee's weekly sales information?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
8.3 Electronic Debit Payments.
8.3.1 FRANCHISEE will pay continuing franchise fees and Brand Building Fees or any other amounts owed to the COMPANY (or its designee) under this Agreement or any other agreement by pre-authorized electronic debit from FRANCHISEE's bank or other financial institution account. On or before Tuesday of each week, the COMPANY or a designated third party supplier will unilaterally obtain FRANCHISEE's weekly sales information directly from FRANCHISEE's POS system for the preceding week ending on Sunday. In the event the COMPANY or its designated third party supplier is unable to directly obtain FRANCHISEE's weekly sales information for whatever reason, the COMPANY will notify FRANCHISEE and FRANCHISEE will provide to the COMPANY no later than Thursday the weekly sales report or such other information as the COMPANY may require, in a form prescribed by the COMPANY and certified by FRANCHISEE or by the designated individual, accurately reflecting FRANCHISEE's Gross Sales for the preceding week ending on Sunday. The amount of continuing franchise fees and Brand Building Fees due thereon will be calculated based on FRANCHISEE's Gross Sales report that has been obtained through the COMPANY's automated process or, alternatively, if the COMPANY or its designated third party supplier was unable to obtain the report from FRANCHISEE's POS system, and FRANCHISEE was thereby required to provide the weekly sales report manually, the amount of continuing franchise fees and Brand Building Fees shall be calculated based on the report submitted by FRANCHISEE. Each Tuesday, the COMPANY will debit FRANCHISEE's account in an amount equal to the continuing franchise fees and Brand Building Fees reported payable by FRANCHISEE and any amounts owed to the COMPANY under this Agreement or any other agreement. If FRANCHISEE fails to timely report its Gross Sales to the COMPANY by Thursday for any weekly reporting period, then the COMPANY will be authorized to debit FRANCHISEE's account in an amount equal to an average of the continuing franchise fees and Brand Building Fees payable by FRANCHISEE during the immediately preceding three-month period (or such shorter period as the Store has been in operation) for which weekly sales reports were received. FRANCHISEE is responsible for ensuring accuracy of the Gross Sales figure that is used for calculation of continuing franchise fees and Brand Building Fees. Nothing in this paragraph is to be construed to waive
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company or a designated third-party supplier will primarily obtain a franchisee's weekly sales information directly from the franchisee's Point of Sale (POS) system. This process is automated, with the information being collected for the preceding week ending on Sunday, typically by Tuesday of each week. This data is used to calculate continuing franchise fees and Brand Building Fees.
However, if Gold Star or its designated third-party supplier cannot directly access the franchisee's POS system for any reason, the franchisee will be notified. In such cases, the franchisee is then responsible for providing a weekly sales report to Gold Star no later than Thursday. This report must be in a format prescribed by Gold Star and certified by the franchisee or a designated individual, accurately reflecting the Gross Sales for the preceding week ending on Sunday.
The amount of continuing franchise fees and Brand Building Fees due will be calculated based on the sales report obtained through the automated POS system process. If the automated process fails and the franchisee provides the report manually, the fees will be calculated based on the manually submitted report. Franchisees are responsible for ensuring the accuracy of the Gross Sales figure used for these calculations.
If a franchisee fails to report their Gross Sales to Gold Star by Thursday for any weekly reporting period, Gold Star is authorized to debit the franchisee's account an amount equal to the average of the continuing franchise fees and Brand Building Fees payable by the franchisee during the immediately preceding three-month period (or such shorter period as the Store has been in operation) for which weekly sales reports were received.