SalesStar

Franchisees must use a standard system-management software (SMS) approved by SalesStar with all SMS modules approved by the franchisor. SMS fees are charged monthly per user, ranging from $100 to $400 per user, depending on user role. All sales must be recorded on a computer-based system fully compatible with SalesStar's systems with seamless electronic integration into the centralized computer system. SalesStar has full and independent access to all data generated from the SMS system. The SalesStar Operations Manual (approximately 448 pages) is provided electronically through intranet or digital portal. Franchisees must establish bookkeeping, accounting, record-keeping and data-processing systems conforming to franchisor requirements, including a common chart of accounts, and must furnish periodic reports (monthly gross revenue reports and monthly profit and loss statements) in accordance with GAAP.