What do the Approval Fees cover 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 |
Note 8: If you want to purchase Restaurant equipment, furnishings, inventory, supplies or other items (a) from a source that is not on Gold Star's then current approved supplier list or (b) that have not been approved by Gold Star, then Gold Star, in accordance with its approval procedures, has the right to inspect the supplier's facilities, test and evaluate samples of items, and require you to pay Gold Star a charge not to exceed the reasonable cost of the inspection and the actual cost of testing or other evaluation.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Approval Fees are charged if a franchisee wants to purchase restaurant equipment, furnishings, inventory, supplies, or other items from a source that is not on Gold Star's approved supplier list or that has not been approved by Gold Star.
Gold Star has the right to inspect the supplier's facilities and test and evaluate samples of the items in accordance with its approval procedures. The franchisee is responsible for paying Gold Star a charge not to exceed the reasonable cost of the inspection and the actual cost of testing or other evaluation.
These Approval Fees are payable to Gold Star on demand and are non-refundable. This is a fairly standard practice in franchising, as franchisors want to ensure consistent quality and standards across all franchise locations. Franchisees should factor in these potential costs when sourcing new suppliers or products.