What criteria does Gold Star use to determine if a supplier has adequate quality controls?
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 purchase from a supplier not currently approved by Gold Star, the franchisee must submit a written request for approval. Gold Star has the right to inspect the supplier's facilities and request samples for testing and evaluation. The franchisee is responsible for covering the reasonable costs of these inspections and evaluations.
Gold Star will then notify the franchisee in writing within 60 days of receiving the request and samples whether the supplier is approved. Gold Star retains the right to reinspect facilities and items periodically and may revoke approval if a source no longer meets the company's criteria. However, Gold Star is not obligated to approve any particular supplier or item.
Any new supplier must also sign a confidentiality agreement that is satisfactory to Gold Star before receiving approval. This process ensures that all suppliers meet Gold Star's standards and protect the company's confidential information.