Can Gold Star change the standards and specifications that approved suppliers must meet?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
ble time, not to exceed sixty (60) days, after receipt of FRANCHISEE's request and samples, whether such approval is granted. The COMPANY reserves the right to reinspect facilities and items from time to time. The COMPANY may revoke approval of any source or item that does not continue to meet any of the COMPANY's then current criteria. The COMPANY shall not be required to approve any particular supplier or item.
- 7.4 Modification of Products.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star has the right to modify the list of approved products and/or suppliers. Franchisees must comply with these modifications and are prohibited from reordering any product or ordering from any supplier that is no longer approved after receiving notice of the change. This ensures that all franchisees adhere to the current System Standards.
Gold Star also reserves the right to reinspect facilities and items from time to time and may revoke approval of any source or item that does not continue to meet the company's then-current criteria. However, Gold Star is not required to approve any particular supplier or item. If a franchisee wants to use a supplier not on the approved list, they must submit a written request for approval, and Gold Star can inspect the supplier's facilities and test samples, with the franchisee bearing the costs of inspection and testing.
These stipulations mean that a Gold Star franchisee must remain flexible and adaptable to changes in approved suppliers and product specifications. While franchisees can propose alternative suppliers, Gold Star retains ultimate control over supplier approval and can change requirements as needed. This is fairly typical in franchising, as franchisors need to maintain quality control and consistency across all locations to protect the brand.