When are building, construction, and leasehold improvement costs due for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
YOUR ESTIMATED INITIAL INVESTMENT 1
| Type of Expenditure | Amount for Free Standing Building | Amount for Inline Space | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee2 | $10,000 to $50,000 | $10,000 to $50,000 | Cashier’s Check | At signing of the Franchise Agreement |
Source: Item 7 — Estimated Initial Investment (FDD pages 18–21)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the costs for building, construction, and leasehold improvements for both free-standing buildings and inline spaces are due as outlined in Note 4 of Item 7. The specific timing and method of payment are arranged between the franchisee and the relevant parties.
For a free-standing building, these costs range from $287,930 to $1,207,022, while for an inline space, the range is $287,618 to $400,000. These costs are significant and can vary widely based on factors such as location, size, and the condition of the premises.
Prospective franchisees should carefully review Note 4 in Item 7, as it likely contains crucial details regarding the payment terms and conditions for these improvements. It is essential to have a clear understanding of these obligations before signing the Franchise Agreement. Franchisees should also consult with Gold Star and approved suppliers to fully understand the payment expectations.
Given the wide range of potential costs and the variability in payment schedules, it is advisable for prospective Gold Star franchisees to conduct thorough due diligence and seek professional advice to ensure they are adequately prepared for these expenses.