factual

What might Gold Star's purchasing specifications include?

Gold_Star Franchise · 2025 FDD

Answer from 2025 FDD Document

oducts and services that Gold Star has later disapproved.

Depending on the item, Gold Star's purchasing specifications may include particular brands or models, particular characteristics of the products and services to be purchased, or one or more particular sources for the product or service. Gold Star may change the specifications during the term of the Franchise Agreement in its sole discretion.

Required Purchases of Goods and Services from Designated and Approved Suppliers.

You must purchase the following goods and services from designated suppliers pursuant to our specifications: chili products in all forms, food products, branded food products, branded and non-branded paper products, cleaning supplies, soda/beverages, bakery items, uniforms, signage and logo items, credit card services, equipment, furniture, architectural services, real estate brokerage services, civil engineering services, menus, marketing services, guest feedback systems. We require you to purchase these items from approved suppliers consistent with our specifications so that the products and services offered by all franchisees are uniform and consistent. We provide a list of these approved suppliers in our Manual. We have established specifications for Restaurant

construction and design, signs, promotional materials, operational procedures, equipment and other items bearing our trademarks, trade name and logos. All specifications are contained in the Manual. We will provide you with a list of required and suggested inventory, equipment and supplies after you purchase the Franchise.

Gold Star requires you to obtain and use a point-of-sale cash register system that meets Gold Star's standards and specifications (collectively, the "POS System") and reserves the right to require you to enter into a maintenance contract for the POS System with our designee.

Gold Star formulates and modifies its standards and specifications imposed on Franchisees based on its experience. Gold Star does not issue its specifications and standards to approved suppliers. Gold Star communicates its approved supplier lists and standards and specifications to you and other Franchisees in a variety of ways, including bulletins, catalogs, intranet and the Manual. Gold Star reserves the right to make revisions, deletions or additions to those standards, specifications and approved supplier lists. Gold Star may modify the list of approved items and/or suppliers, and you may not, after receipt of notice of modification, reorder any item, or order from any supplier, that is no longer approved. Franchisees are advised of modifications and revocations in writing.

You must use a real estate broker, architect, general contractor and, if applicable, civil engineer and attorney acceptable to Gold Star for the purchase or leasing of the Retail Location and the construction of your franchised Restaurant.

Approval of Alternative Suppliers.

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.

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, the brand's purchasing specifications may include particular brands or models, specific characteristics of the products and services to be purchased, or one or more particular sources for the product or service. These specifications are designed to ensure that each Gold Star restaurant maintains a high degree of quality and service. Gold Star also retains the right to change these specifications during the term of the Franchise Agreement at its sole discretion.

As a Gold Star franchisee, you must adhere to the methods, standards, and specifications prescribed in the Manual or in writing by Gold Star. This includes offering only approved products and services, selling all required products and services, and purchasing equipment, fixtures, software, ingredients, paper products, and other items according to Gold Star's specifications. Franchisees must also employ only the preparation standards and techniques that Gold Star specifies and must not deviate from these standards, including those concerning product preparation.

Gold Star requires franchisees to purchase specific goods and services from designated suppliers, including chili products, food products, branded food products, paper products, cleaning supplies, soda/beverages, bakery items, uniforms, signage and logo items, credit card services, equipment, furniture, architectural services, real estate brokerage services, civil engineering services, menus, marketing services, and guest feedback systems. These requirements ensure uniformity and consistency across all Gold Star locations. The approved suppliers are listed in the Manual, along with specifications for restaurant construction and design, signs, promotional materials, operational procedures, equipment, and other trademarked items.

If a franchisee wishes to purchase from a non-approved source or offer non-approved merchandise or services, they must submit a written request for approval to Gold Star. Gold Star may inspect the source's facilities, request samples for testing and evaluation, and charge the franchisee for the cost of inspection and testing. Gold Star will then notify the franchisee of its decision within 60 days. However, Gold Star reserves the right to re-inspect facilities and items and may revoke approval if the source or item no longer meets its criteria. Gold Star does not disclose its supplier approval criteria to franchisees.

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.