Does Gold Star specify the format for the confidentiality agreement that new suppliers must execute?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
MPANY's then current criteria. The COMPANY shall not be required to approve any particular supplier or item.
- 7.4 Modification of Products. The COMPANY may from time to time modif
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, any new supplier must execute a confidentiality agreement before receiving approval from Gold Star. However, the FDD does not specify a particular format for this agreement; it only states that the agreement's form and substance must be satisfactory to Gold Star.
This means that if a franchisee wishes to use a supplier not already approved by Gold Star, that supplier will need to sign a confidentiality agreement. The specific terms and conditions of this agreement are not predetermined in the FDD, giving Gold Star discretion over what it deems acceptable.
For a prospective franchisee, this implies that they should be prepared to facilitate communication between Gold Star and any potential new suppliers to ensure the confidentiality agreement meets Gold Star's requirements. It also means that the franchisee does not have complete autonomy in choosing suppliers, as Gold Star has the final say on whether the confidentiality agreement is satisfactory. A prospective franchisee should inquire about the typical terms and conditions Gold Star requires in these confidentiality agreements to better understand the obligations of potential new suppliers.