Is Gold Star obligated to approve any particular supplier or item requested by a franchisee?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want to purchase from a source that is not on Gold Star'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 Gold Star's then current list of approved merchandise, services or other items, you must submit to Gold Star a written request for approval in accordance with Gold Star's procedures then in effect for submission of requests for approval of products and suppliers. Gold Star may require that its representatives be permitted to inspect the source's facilities, that samples from the source be submitted to Gold Star or its designee for testing and evaluation and that you pay Gold Star a charge not to exceed the reasonable cost of the inspection and the actual cost of testing or other evaluation. Gold Star will notify you in writing within a reasonable time, not to exceed 60 days, after receipt of your request and samples, whether approval is granted. Gold Star reserves the right to re-inspect facilities and items, may revoke approval of any source or item that does not continue to meet any of Gold Star's current criteria, and is not obligated to approve any particular supplier or item. Gold Star does not make its criteria for supplier approval available to Franchisees.
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, Gold Star is not obligated to approve any particular supplier or item requested by a franchisee. However, if a franchisee wants to purchase from a source not on Gold Star's approved supplier list, they can submit a written request for approval. Gold Star may then inspect the source's facilities and test samples, with the franchisee bearing the reasonable costs of inspection and testing. Gold Star will provide a written response within 60 days of receiving the request and samples.
Gold Star retains the right to re-inspect facilities and items and can revoke approval if a source or item no longer meets their criteria. The criteria for supplier approval are not disclosed to franchisees. This process applies to merchandise, services, and other items not already on Gold Star's approved list.
This policy allows Gold Star to maintain quality control and uniformity across all franchise locations by carefully vetting suppliers and products. However, it also means that franchisees may face restrictions in sourcing products and services from suppliers of their choice, potentially impacting their costs and operational flexibility. Franchisees should be aware of these restrictions and the approval process for alternative suppliers before investing in a Gold Star franchise.