What criteria must suppliers meet to become approved suppliers for Gold Star franchisees?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
ls and capacity to supply FRANCHISEE's needs promptly and reliably, who have been approved in writing by the COMPANY as a source of such item prior to any purchases by FRANCHISEE from such supplier and who have not thereafter been disapproved. FRANCHISEE acknowledges that the COMPANY may from time to time receive rebates or discounts from such suppliers.
- 7.3 Alternative Suppliers. If FRANCHISEE desires to purchase from a source that is not on the COMPANY'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 the COMPANY's then current list of approved Products, FRANCHISEE shall submit to the COMPANY a written request for approval in accordance with the procedures then prescribed by the COMPANY for submission of requests for approval of products and suppliers. The COMPANY shall have the right to require that its representatives be permitted to inspect the source's facilities, that samples from the source be submitted to the COMPANY or its designee for testing and evaluation and that FRANCHISEE pay the COMPANY a charge not to exceed the reasonable cost of the inspection and the actual cost of testing or other evaluation. The COMPANY shall notify FRANCHISEE in writing within a reasonable 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.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if a franchisee wants to use a supplier not already on Gold Star's approved list, they must request approval from Gold Star. Gold Star can then inspect the supplier's facilities and ask for samples for testing and evaluation. The franchisee will have to cover the costs of these inspections and evaluations. Gold Star has a reasonable time, up to 60 days after receiving the request and samples, to inform the franchisee whether the supplier is approved.
Gold Star retains the right to re-inspect facilities and items periodically and can revoke approval if a source no longer meets their criteria. However, Gold Star is not obligated to approve any specific supplier or item. Any new supplier must also sign a confidentiality agreement that is satisfactory to Gold Star before getting approval.
These stipulations ensure that Gold Star franchisees maintain consistent standards for products and services. While franchisees can suggest alternative suppliers, Gold Star maintains control over the supply chain to protect brand standards and quality. Prospective franchisees should discuss with Gold Star what specific criteria are applied during supplier evaluations to better understand the approval process.