Must a Gold Star franchisee operate their Restaurant in strict conformity with the methods, standards and specifications prescribed in writing?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
counts for franchisees and its company-owned restaurants.
To ensure that the Restaurant maintains the highest degree of quality and service, you must operate your Restaurant in strict conformity with the methods, standards and specifications that we prescribe in the Manual (as defined in Item 11 hereof) or otherwise in writing:
- offer for sale only those products and services for which Gold Star has given its written approval;
- sell or offer for sale all of the products and services Gold Star requires;
- purchase equipment, fixtures, software, ingredients, paper products and other items in accordance with Gold Star's specifications;
- employ only the preparation standards and techniques that Gold Star specifies;
- not deviate from Gold Star's standards and specifications, including our requirements concerning product preparation; and
- refrain from selling and offering for sale any products and services that Gold Star has later disapproved.
Depending on the item, Gold Star's purchasing specifications may include particular brands or models, particular characteristics of the products and services to be purchased, or one or more particular sources for the product or service. Gold Star may change the specifications during the term of the Franchise Agreement in its sole discretion.
Required Purchases of Goods and Services from Designated and Approved Suppliers.
You must purchase the following goods and services from designated suppliers pursuant to our specifications: chili products in all forms, food products, branded food products, branded and non-branded paper products, cleaning supplies, soda/beverages, bakery items, uniforms, signage and logo items, credit card services, equipment, furniture, architectural services, real estate brokerage services, civil engineering services, menus, marketing services, guest feedback systems.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–25)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees must operate their restaurants in strict accordance with the methods, standards, and specifications outlined in writing by Gold Star. This encompasses various aspects of the business, including the products and services offered, the equipment and ingredients used, and the preparation techniques employed. Gold Star provides these specifications in its Manual and other written communications.
This requirement ensures uniformity and consistency across all Gold Star locations, maintaining the brand's quality and reputation. Franchisees are obligated to sell only approved products and services, adhere to Gold Star's purchasing specifications for equipment and ingredients, and follow the prescribed preparation standards. Deviations from these standards are not permitted, and franchisees must refrain from selling any products or services that Gold Star has disapproved.
Gold Star retains the right to modify these specifications during the franchise term, and franchisees are notified of any revisions in writing. This allows Gold Star to adapt to changing market conditions and maintain brand standards. Franchisees are also required to use approved suppliers for a wide range of goods and services, with approximately 90% to 95% of total purchases conforming to Gold Star's specifications or sourced from approved suppliers. For the fiscal year ended December 31, 2024, Gold Star's revenues from sales to franchisees or their suppliers were $4,065,676, representing about 16.7% of Gold Star's total revenues of $24,400,821.
Prospective franchisees should carefully review the Gold Star Manual and other written communications to fully understand the scope of these operational requirements and restrictions. They should also inquire about the process for requesting approval of alternative suppliers or products, as well as the criteria Gold Star uses for supplier approval.