How long does Gold Star have to notify a franchisee about the approval of a new supplier?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
If FRANCHISEE desires to purchase from a source that is not on the COMPANY's then current approved supplier list for the item desired to be purchased, or to obtain approval to offer merchandise or services or use items that are not on the COMPANY's then current list of approved Products, FRANCHISEE shall submit to the COMPANY a written request for approval in accordance with the procedures then prescribed by the COMPANY for submission of requests for approval of products and suppliers.
The COMPANY shall have the right to require that its representatives be permitted to inspect the source's facilities, that samples from the source be submitted to the COMPANY or its designee for testing and evaluation and that FRANCHISEE pay the COMPANY a charge not to exceed the reasonable cost of the inspection and the actual cost of testing or other evaluation.
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 inspection and testing.
Gold Star is then required to notify the franchisee in writing about the approval decision within a reasonable timeframe, which the document specifies will not exceed 60 days. This 60-day period starts after Gold Star receives the franchisee's request and any required samples from the potential new supplier.
This process ensures that Gold Star maintains control over its supply chain and product quality, while also allowing franchisees the opportunity to suggest alternative suppliers. However, Gold Star retains the right to deny approval of any supplier or item and may revoke approval if a supplier no longer meets the company's standards.