Are Gold Star's criteria for supplier approval made available to franchisees?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Gold Star does not make its criteria for supplier approval available to Franchisees.
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.
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, Gold Star does not make its criteria for supplier approval available to franchisees. However, Gold Star communicates its approved supplier lists and standards and specifications to franchisees in a variety of ways, including bulletins, catalogs, intranet, and the Manual. Gold Star reserves the right to make revisions, deletions, or additions to those standards, specifications, and approved supplier lists. Franchisees are advised of modifications and revocations in writing.
If a franchisee wants to purchase from a source that is not on Gold Star's current approved supplier list, they must submit a written request for approval. Gold Star may inspect the source's facilities, require samples for testing and evaluation, and charge the franchisee for the cost of the inspection and evaluation. Gold Star will notify the franchisee in writing within 60 days of the request whether approval is granted.
Gold Star reserves the right to re-inspect facilities and items and may revoke approval of any source or item that does not continue to meet Gold Star's current criteria. Gold Star is not obligated to approve any particular supplier or item. This means that while franchisees can request approval for alternative suppliers, the ultimate decision rests with Gold Star, and the specific criteria used for these decisions are not disclosed to the franchisees.