What goods and services must Gold Star franchisees purchase from designated suppliers?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
oods 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. We require you to purchase these items from approved suppliers consistent with our specifications so that the products and services offered by all franchisees are uniform and consistent. We provide a list of these approved suppliers in our Manual. We have established specifications for Restaurant
construction and design, signs, promotional materials, operational procedures, equipment and other items bearing our trademarks, trade name and logos. All specifications are contained in the Manual. We will provide you with a list of required and suggested inventory, equipment and supplies after you purchase the Franchise.
Gold Star requires you to obtain and use a point-of-sale cash register system that meets Gold Star's standards and specifications (collectively, the "POS System") and reserves the right to require you to enter into a maintenance contract for the POS System with our designee.
Gold Star formulates and modifies its standards and specifications imposed on Franchisees based on its experience. Gold Star does not issue its specifications and standards to approved suppliers.
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 are required to purchase a specific list of goods and services from designated suppliers. This is to ensure uniformity and consistency across all Gold Star locations.
The required goods and services include 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, and guest feedback systems. The FDD states that Gold Star provides a list of approved suppliers in their Manual.
In addition to these specific items, Gold Star franchisees must also use a real estate broker, architect, general contractor, and, if applicable, a civil engineer and attorney acceptable to Gold Star for the purchase or leasing of the Retail Location and the construction of the franchised Restaurant. The FDD indicates that approximately 90% to 95% of total purchases associated with establishing the Restaurant and the ongoing operation of the Restaurant must be purchased or leased from Gold Star or Gold Star approved suppliers, or conform to Gold Star specifications. For the fiscal year ended December 31, 2024, Gold Star's revenues from the sale of these products to Franchisees or to suppliers who in-turn sell these products to Franchisees were $4,065,676 or approximately 16.7% of Gold Star's total revenues of $24,400,821.
Prospective franchisees should carefully review the list of designated suppliers in the Gold Star manual and understand the implications of these purchasing requirements on their operating costs and overall profitability. They should also inquire about the process for requesting approval of alternative suppliers if they wish to use a source not already on the approved list.