What does the Gold Star Audit Fee cover?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Fee13 | Cost of audit plus interest and late payment charge on underpayment | On demand | Payable to Gold Star Non-refundable |
Note 13: Payable only if audit discloses an understatement of at least 2% of Gross Sales for any reporting period.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, the Audit Fee covers the cost of the audit itself, plus any interest and late payment charges on any underpayment that is discovered. This fee is payable to Gold Star and is non-refundable. The Audit Fee is due on demand, meaning Gold Star can request payment at any time after the audit is completed.
Importantly, Gold Star will only charge this fee if an audit reveals that the franchisee has understated their Gross Sales by at least 2% for any reporting period. This provides some assurance to franchisees that they won't be charged for minor discrepancies. However, if the understatement is significant, the franchisee will be responsible for covering the audit costs in addition to rectifying the sales figures and paying any associated underpaid fees.
For a prospective Gold Star franchisee, this means maintaining accurate and transparent financial records is crucial. Failing to do so could result in not only back payments of owed fees but also the added expense of an audit. Franchisees should ensure they understand Gold Star's reporting requirements and have systems in place to track sales accurately to avoid triggering an audit and the associated fees.