factual

How long does Gold Star have to notify a franchisee about the approval of an alternative supplier?

Gold_Star Franchise · 2025 FDD

Answer from 2025 FDD Document

The COMPANY shall notify FRANCHISEE in writing within a reasonable time, not to exceed sixty (60) days, after receipt of FRANCHISEE's request and samples, whether such approval is granted.

Source: Item 23 — Receipts (FDD pages 53–163)

What This Means (2025 FDD)

According to Gold Star's 2025 Franchise Disclosure Document, if a franchisee wants to purchase from a supplier not currently approved by Gold Star, the franchisee must submit a written request for approval. Gold Star has the right to inspect the supplier's facilities and request samples for testing, with the franchisee covering the costs of these inspections and evaluations.

Gold Star is then required to notify the franchisee in writing about the approval decision within a specific timeframe. This notification period cannot exceed 60 days from when Gold Star receives the franchisee's request and the necessary samples. This ensures that franchisees receive a timely response, allowing them to make informed decisions about their supply chain.

This process allows Gold Star to maintain quality control and consistency across all franchise locations while also providing franchisees with the flexibility to propose alternative suppliers. However, Gold Star is not obligated to approve any particular supplier or item, retaining the right to reject requests based on their standards and criteria. This protects the brand's reputation and ensures that all products and services meet the established quality benchmarks.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.