What items must a Gold Star franchisee purchase in accordance with Gold Star's specifications?
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. 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. Gold Star communicates its approved supplier lists and standards and specifications to you and other Franchisees in a variety of ways, including bulletins, catalogs, intranet and the Manual. Gold Star reserves the right to make revisions, deletions or additions to those standards, specifications and approved supplier lists. Gold Star may modify the list of approved items and/or suppliers, and you may not, after receipt of notice of modification, reorder any item, or order from any supplier, that is no longer approved.
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 purchase specific items to ensure quality and service standards are maintained. These items include equipment, fixtures, software, ingredients, and paper products, all adhering to Gold Star's detailed specifications. These specifications may include particular brands or models, specific characteristics, or designated sources, and Gold Star retains the right to modify these specifications during the franchise term.
Gold Star requires franchisees to purchase certain goods and services from designated suppliers. These include chili products, 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 purpose of this requirement is to ensure uniformity and consistency across all Gold Star locations. A list of approved suppliers is available in the Manual.
Franchisees are also obligated to use a point-of-sale (POS) cash register system that meets Gold Star's standards, and may be required to enter into a maintenance contract for the POS system with a Gold Star designee. Furthermore, franchisees must use real estate brokers, architects, general contractors, civil engineers, and attorneys acceptable to Gold Star for site selection and construction. Approximately 90% to 95% of total purchases for establishing and operating the restaurant must be from Gold Star or its approved suppliers, or conform to Gold Star's specifications.
Prospective franchisees should carefully review the list of required and suggested inventory, equipment, and supplies provided after purchasing the franchise, as well as the detailed specifications in the Manual. Understanding these requirements is crucial for budgeting and operational planning. Franchisees should also be aware of Gold Star's right to modify approved items and/or suppliers, and the obligation to comply with these changes to maintain brand standards.