When is the Brand Building Fee for Gold Star payable?
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 is payable on or before Tuesday of each week. This payment is based on the Gross Sales from the preceding week, which ends on Sunday. The Brand Building Fee is calculated as a percentage of Gross Sales, as outlined on the cover page of the agreement.
Gold Star franchisees are required to make these payments to the company or its designee for the Brand Building Fund. These payments are facilitated through a preauthorized debit arrangement, as detailed in Section 8.2 of the FDD. The Brand Building Fee can be adjusted by Gold Star at its discretion, but it cannot exceed seven percent of the franchisee's Gross Sales in any calendar year without the franchisee's written consent. Furthermore, increases to the Brand Building Fee are capped at 1% within any 12-month period.
Franchisees should also note that all Brand Building Fees are nonrefundable. This payment schedule and the potential for adjustments underscore the importance of carefully reviewing the franchise agreement and understanding the financial obligations associated with the Gold Star franchise.