Is the Approval Fee refundable for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Approval Fees8 | Not to exceed reasonable cost of inspection and actual cost of testing or evaluation | On demand | Payable to Gold Star Non-refundable |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Approval Fee is non-refundable. This fee covers the reasonable cost of inspection and the actual cost of testing or evaluation should a franchisee wish to purchase restaurant equipment, furnishings, inventory, supplies, or other items from a source not already approved by Gold Star.
This means that if a prospective Gold Star franchisee seeks approval for a new supplier or product, they will have to pay for the inspection and testing costs, and these costs will not be reimbursed, regardless of whether the supplier or product is ultimately approved. The fee is payable to Gold Star on demand.
It is common practice in franchising for approval fees to be non-refundable, as they cover the franchisor's expenses in evaluating potential new suppliers or products to ensure they meet brand standards and quality requirements. Franchisees should factor this non-refundable fee into their budget when considering alternative suppliers or products for their Gold Star restaurant.