Can the Gold Star brand building fee be increased or decreased?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.1.8 A continuing brand building fee, based on Gross Sales, in the amount of the Percentage Brand Building Fee set forth on the cover page hereof (the "Brand Building Fee"), subject to increase or decrease by the COMPANY in its sole discretion (but not to exceed, in any calendar year, seven percent (7%) of FRANCHISEE's Gross Sales for such year without the written consent of FRANCHISEE).
The Brand Building Fee will not be increased by more than 1% in any 12-month period.
All Brand Building Fees are nonrefundable.
Unless otherwise required in the Manual or pursuant to Section 8.3 below, the Brand Building Fee shall be payable by FRANCHISEE to the COMPANY (or the COMPANY's designee) for the COMPANY's Brand Building Fund (as defined in Section 9.3)) on or before Tuesday of each week based on the Gross Sales for the preceding week ending on Sunday pursuant to the preauthorized debit arrangement described in Section 8.2, below.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Brand Building Fee can be adjusted at the company's discretion. The Brand Building Fee is based on Gross Sales and is subject to change by Gold Star. However, the Brand Building Fee cannot exceed seven percent of the franchisee's Gross Sales in any calendar year without the franchisee's written consent.
Furthermore, Gold Star will not increase the Brand Building Fee by more than 1% in any 12-month period. All Brand Building Fees are nonrefundable. Unless otherwise required in the Manual, the Brand Building Fee shall be payable by franchisee to the company on or before Tuesday of each week based on the Gross Sales for the preceding week ending on Sunday pursuant to the preauthorized debit arrangement.
This means that while Gold Star has the flexibility to adjust this fee, there are limitations in place to protect franchisees from drastic or frequent increases. A prospective franchisee should consider this when evaluating the potential costs and financial obligations associated with the franchise.