Can Gold Star change the requirements for the confidentiality agreement that new suppliers must execute?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
MPANY's then current criteria. The COMPANY shall not be required to approve any particular supplier or item.
- 7.4 Modification of Products. The COMPANY may from time to time modif
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, any new supplier must execute a confidentiality agreement. The specific requirements of this agreement, including its form and substance, must be satisfactory to Gold Star.
This means that Gold Star has the authority to dictate the terms of the confidentiality agreement that new suppliers must adhere to. A prospective franchisee should understand that they cannot use a supplier unless that supplier agrees to Gold Star's confidentiality terms. This protects Gold Star's proprietary information and trade secrets.
The FDD does not specify the exact terms of the confidentiality agreement, but it emphasizes that the agreement must be satisfactory to Gold Star. This gives Gold Star broad discretion in determining what is acceptable. Franchisees should be aware that Gold Star can change the requirements for the confidentiality agreement at any time, and new suppliers must comply with these changes to gain or maintain approval.