What are some examples of 'food supplies, ingredients and equipment' that Gold Star franchisees must purchase from approved suppliers?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall purchase all food supplies, ingredients and equipment used to make Products (including Proprietary Products), any items used in the construction of the Retail Location or operation of the Business, or otherwise offered for sale or used in the Store and not required to be purchased from the COMPANY or its designees, solely from sources who demonstrate, to the continuing satisfaction of the COMPANY, the ability to meet the COMPANY's then current standards and specifications for such items, who possess adequate quality controls 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.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees must purchase food supplies, ingredients, and equipment from approved suppliers. While the FDD states this requirement, it does not provide a specific list or examples of these items. Instead, it indicates that Gold Star maintains standards and specifications that suppliers must meet to gain and retain approval.
Gold Star franchisees are obligated to source 'Proprietary Products' directly from Gold Star or its designated suppliers. These 'Proprietary Products' include secret blends of spices and flavorings, as well as Gold Star's secret chili product and related items. For all other food supplies, ingredients, and equipment, franchisees must use suppliers approved by Gold Star.
If a franchisee wishes to use a supplier not currently on Gold Star's approved list, they must submit a written request for approval. Gold Star has the right to inspect the supplier's facilities, request samples for testing and evaluation, and charge the franchisee for the costs of inspection and evaluation. Gold Star will then notify the franchisee of its decision within sixty days. Even after approval, Gold Star reserves the right to reinspect facilities and items and may revoke approval if a supplier no longer meets the company's standards.
Prospective franchisees should request a comprehensive list of approved suppliers and the specific food supplies, ingredients, and equipment that must be purchased from them. Understanding these requirements is crucial for budgeting and operational planning, as it directly impacts the cost of goods and the franchisee's ability to manage their supply chain.