Is the Gold Star brand building fee refundable?
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.
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 fees are nonrefundable. Specifically, the FDD states that all brand building fees are nonrefundable.
This means that once a Gold Star franchisee pays the brand building fee, they cannot get it back under any circumstances. This is a standard practice in franchising, as these fees are used for ongoing marketing and brand development efforts that benefit all franchisees.
As a prospective franchisee, it is important to factor this nonrefundable aspect into your financial planning. You should carefully consider the amount of the brand building fee and ensure that you are comfortable with the fact that you will not be able to recover this money, even if you later decide to terminate your franchise agreement.