Are there any limitations on the profits that Gold Star or its affiliates can charge on sales or services to 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, the franchise agreement does not limit the profits, revenues, or income that Gold Star or its affiliates may earn or charge on sales or services to franchisees. This means Gold Star has the freedom to set prices and profit margins on goods and services sold to its franchisees.
Furthermore, the agreement does not entitle franchisees to any share or participation in discounts, rebates, commissions, fees, or other sums that Gold Star may receive from suppliers, distributors, manufacturers, sales organizations, or others providing goods or services to Gold Star or its franchisees. Franchisees also have no claim to judgments or damages awarded to Gold Star.
This arrangement is typical in franchising, where franchisors often derive revenue from various sources, including the sale of goods and services to franchisees. Franchisees should be aware that Gold Star is not obligated to share any discounts or other financial benefits it receives with them.