Besides interest, what other charge is included in the Late Payment Charge for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Late Payment Charge16 | Interest of lesser of 1½% per month or the maximum rate permitted by law, plus $25 | 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, in addition to interest, a $25 charge is included in the Late Payment Charge. This charge applies to any fee or other payment not made to Gold Star or its affiliates when due.
Specifically, if a Gold Star franchisee fails to make a payment on time, they will be charged interest on the overdue amount. The interest rate is the lesser of 1½% per month or the maximum rate permitted by law. In addition to this interest, Gold Star will also impose a fixed $25 late payment charge.
This late payment charge is payable to Gold Star and is non-refundable. It is important for prospective franchisees to understand all the fees associated with operating a Gold Star franchise, including the potential for late payment charges, to effectively manage their finances and avoid unnecessary expenses.