Does Gold Star have to provide a reason for revoking approval of a source or item?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The COMPANY may revoke approval of any source or item that does not continue to meet any of the COMPANY's then current criteria.
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 may revoke approval of a source or item if it no longer meets the company's current criteria, and Gold Star is not required to approve any particular supplier or item. This means that Gold Star franchisees are obligated to purchase goods from approved suppliers, but Gold Star has the right to change this list.
If a franchisee wants to use a different supplier, they must submit a written request for approval. Gold Star can inspect the supplier's facilities and test samples, charging the franchisee for the inspection and testing costs. Gold Star will then notify the franchisee of its decision within 60 days of receiving the request and samples.
Gold Star also retains the right to periodically reinspect facilities and items. If a previously approved source or item no longer meets Gold Star's standards, the company can revoke its approval. However, the FDD does not state that Gold Star is obligated to provide a reason for this revocation. This gives Gold Star significant control over the supply chain and product quality, but it also means that franchisees may have limited recourse if a previously approved supplier is suddenly removed from the list.