When are the Approval Fees due 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, Approval Fees are due 'on demand.' These fees are payable to Gold Star and are non-refundable.
The Approval Fees are associated with purchasing restaurant equipment, furnishings, inventory, supplies, or other items from a source not on Gold Star's approved supplier list or that have not been approved by Gold Star. In such cases, Gold Star has the right to inspect the supplier's facilities and test samples of items. The Approval Fees cover the reasonable cost of this inspection and the actual cost of testing or evaluation.
In practical terms, this means that if a franchisee chooses to deviate from Gold Star's approved suppliers, they should be prepared to pay these fees promptly when Gold Star requests them. Franchisees should factor these potential costs into their budget if they anticipate using non-approved suppliers.