factual

Does Gold Star specify the substance of the confidentiality agreement that new suppliers must execute?

Gold_Star Franchise · 2025 FDD

Answer 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 the exact terms or substance of this confidentiality agreement, only that it must be satisfactory to Gold Star.

This means that if a franchisee wants to use a supplier not already approved by Gold Star, that supplier will need to sign an agreement to protect Gold Star's confidential information. The specific details of what the supplier needs to keep confidential are not outlined in the FDD, but the agreement's form and substance must be acceptable to Gold Star.

For a prospective franchisee, this implies that they have limited control over the terms of the confidentiality agreement required of their potential suppliers. Gold Star retains the right to determine what is satisfactory, which could impact the franchisee's ability to negotiate with alternative suppliers or use specific products. It is important for franchisees to understand Gold Star's criteria for supplier approval and confidentiality agreements to avoid potential conflicts or delays in sourcing products.

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.