Does Gold Star reserve the right to re-inspect facilities and items from approved suppliers?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Gold Star Franchise Disclosure Document, Gold Star does reserve the right to re-inspect the facilities and items of approved suppliers. This is part of Gold Star's broader authority to ensure that all suppliers meet their standards. Gold Star may also revoke approval of any supplier or item that no longer meets their criteria.
Before a potential supplier is approved, Gold Star may inspect the source's facilities and require samples for testing and evaluation. The franchisee may have to cover the costs associated with the inspection and testing. Gold Star will then notify the franchisee in writing, within 60 days of receiving the request and samples, whether the supplier has been approved.
This ongoing inspection right allows Gold Star to maintain quality control and uniformity across all franchise locations. However, Gold Star is not obligated to approve any particular supplier or item, and they do not make their criteria for supplier approval available to franchisees. This gives Gold Star significant discretion over the supply chain, which could impact a franchisee's costs and sourcing options.