Under what conditions can Gold Star revoke approval of a source or item?

According to Gold Star's 2025 Franchise Disclosure Document, Gold Star reserves the right to re-inspect facilities and items and may revoke approval of any source or item that does not continue to meet any of Gold Star's current criteria. This means that even if a supplier or item is initially approved, Gold Star can withdraw that approval if the supplier fails to maintain Gold Star's standards. Gold Star is not obligated to approve any particular supplier or item. Gold Star does not make its criteria for supplier approval available to Franchisees.

For a prospective franchisee, this implies that approved suppliers and items are not guaranteed for the entire term of the franchise agreement. Gold Star can change its criteria and revoke approvals, potentially requiring franchisees to switch suppliers or items. This could lead to increased costs or disruptions in the supply chain if a previously approved source is no longer acceptable. Franchisees are advised of modifications and revocations in writing.

This level of control over suppliers is common in franchising to maintain brand consistency and quality. However, the fact that Gold Star does not disclose its specific criteria for supplier approval to franchisees adds an element of uncertainty. Franchisees may find it difficult to anticipate or prepare for potential changes in approved sources or items, as they are not privy to the standards used for evaluation. Therefore, it is important for prospective franchisees to inquire about the frequency of supplier evaluations and the types of criteria used, even if the specific details are not disclosed.