What costs might a Gold Star franchisee have to pay related to the approval of an alternative supplier?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want to purchase from a source that is not on Gold Star's then current approved supplier list for the item desired to be purchased, or to obtain approval to offer merchandise or services or use items that are not on Gold Star's then current list of approved merchandise, services or other items, you must submit to Gold Star a written request for approval in accordance with Gold Star's procedures then in effect for submission of requests for approval of products and suppliers. Gold Star may require that its representatives be permitted to inspect the source's facilities, that samples from the source be submitted to Gold Star or its designee for testing and evaluation and that you pay Gold Star a charge not to exceed the reasonable cost of the inspection and the actual cost of testing or other evaluation. Gold Star will notify you in writing within a reasonable time, not to exceed 60 days, after receipt of your request and samples, whether approval is granted. Gold Star reserves the right to re-inspect facilities and items, may revoke approval of any source or item that does not continue to meet any of Gold Star's current criteria, and is not obligated to approve any particular supplier or item. Gold Star does not make its criteria for supplier approval available to Franchisees.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–25)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, a franchisee may incur costs when seeking approval for alternative suppliers. If a franchisee wishes to purchase from a supplier not currently on Gold Star's approved list, they must submit a written request for approval.
Gold Star may then require its representatives to inspect the supplier's facilities and request samples for testing and evaluation. The franchisee is responsible for covering the reasonable cost of the inspection and the actual cost of any testing or evaluation performed. Gold Star will then notify the franchisee in writing of its decision within 60 days of receiving the request and samples.
It's important to note that Gold Star retains the right to re-inspect facilities and items and may revoke approval if a supplier or item no longer meets their criteria. Gold Star is not obligated to approve any particular supplier or item, and they do not disclose their specific criteria for supplier approval to franchisees. This means a franchisee could incur costs for inspections and testing without any guarantee of approval.