Who are the approved suppliers for the initial inventory for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
YOUR ESTIMATED INITIAL INVESTMENT 1
| Type of Expenditure | Amount for Free Standing Building | Amount for Inline Space | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee2 | $10,000 to $50,000 | $10,000 to $50,000 | Cashier’s Check | At signing |
Source: Item 7 — Estimated Initial Investment (FDD pages 18–21)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the initial inventory costs between $8,000 and $12,000 for both free-standing and inline locations. Payment is arranged before opening, and payments are made to Gold Star and approved suppliers.
This means that as a prospective franchisee, you will need to budget between $8,000 and $12,000 for your initial inventory. The actual amount will likely depend on the size of your restaurant and Gold Star's specific requirements at the time you open. You will need to establish payment arrangements with both Gold Star and its approved suppliers to ensure you have the necessary inventory to begin operations.
It is important to note that Gold Star requires franchisees to purchase inventory from approved suppliers. This is a common practice in franchising to ensure brand consistency and quality control. Franchisees should ask Gold Star for a list of approved suppliers and their contact information during their due diligence process. Understanding the supplier relationships and payment terms is crucial for managing your initial investment and ongoing operational costs.