What are the current payment terms with Gold Star's designated suppliers?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 6: Current terms with our designated suppliers are Net 7 or Net 14, but in instances where payments are late or not made, the supplier may demand cash on delivery.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the standard payment terms with its designated suppliers are either Net 7 or Net 14. This means franchisees are expected to pay invoices within 7 or 14 days of the invoice date, depending on the specific supplier agreement.
However, Gold Star notes that suppliers may demand cash on delivery (COD) from franchisees who have a history of late or non-payments. This is a critical point for prospective franchisees to consider, as maintaining good payment practices is essential to avoid disruptions in supply and potential strain on cash flow.
It is important for franchisees to clarify with Gold Star which suppliers offer Net 7 versus Net 14 terms, and to understand the procedures for ensuring timely payments to avoid being placed on COD terms. This information can help franchisees manage their accounts payable effectively and maintain positive relationships with key suppliers.