factual

Does Gold Star have to provide a reason if they disapprove a supplier?

Gold_Star Franchise · 2025 FDD

Answer from 2025 FDD Document

The COMPANY shall not be required to approve any particular supplier or item.

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

What This Means (2025 FDD)

According to Gold Star's 2025 Franchise Disclosure Document, Gold Star is not required to approve any particular supplier or item. If a franchisee desires to purchase from a source not on Gold Star's approved supplier list, the franchisee must submit a written request for approval. Gold Star has the right to inspect the source's facilities and require samples for testing, with the franchisee bearing the costs of inspection and evaluation.

Gold Star will notify the franchisee in writing within a reasonable time, not exceeding 60 days after receiving the request and samples, whether approval is granted. Gold Star reserves the right to reinspect facilities and items periodically and may revoke approval if a source or item no longer meets their criteria.

This means that while Gold Star has a process for franchisees to request approval of alternative suppliers, they retain the ultimate discretion to approve or disapprove any supplier or item without necessarily providing a specific reason. This allows Gold Star to maintain quality control and consistency across all franchise locations, but it also means franchisees may face limitations in sourcing products from suppliers of their choice.

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.