What recourse does a Gold Star franchisee have if they disagree with Gold Star's decision to revoke approval of a supplier?
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.
WRITTEN APPROVALS.** Whenever this Agreement requires the COMPANY's prior approval or consent, FRANCHISEE shall make a timely written request therefor, and such approval may be granted or denied by the COMPANY in its discretion.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, Gold Star reserves the right to revoke approval of any supplier or item that does not continue to meet the company's current criteria. The FDD does not explicitly detail a specific process or mechanism for a franchisee to formally appeal or challenge Gold Star's decision to revoke approval of a supplier.
However, the agreement stipulates that whenever the franchisee requires Gold Star's approval or consent, the franchisee must submit a timely written request. While this clause refers to obtaining approvals, it could be inferred that a franchisee could use a similar written request to express disagreement or seek reconsideration regarding a revoked supplier. Gold Star has the discretion to grant or deny such requests.
Given the lack of a clearly defined appeal process in the FDD, prospective Gold Star franchisees should directly inquire with Gold Star about the specific steps, if any, available to dispute a supplier revocation decision. Understanding the franchisor's willingness to engage in dialogue and potential avenues for resolution is crucial for maintaining a healthy franchisor-franchisee relationship.