Are the continuing franchise fees for Gold Star refundable?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.1.7 A continuing franchise fee, based on Gross Sales, in the amount of the Percentage Franchise Fee set forth on the cover page hereof.
All continuing franchise fees are nonrefundable.
Unless otherwise required in the Manual, the continuing franchise 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 described in Section 8.3, below.
- 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 continuing franchise fees are nonrefundable. The FDD specifies that all continuing franchise fees are nonrefundable.
In addition to the continuing franchise fee, Gold Star franchisees also pay a continuing brand building fee, which is also nonrefundable. These fees are based on a percentage of gross sales. The continuing franchise fee is outlined on the cover page of the FDD, while the brand building fee is subject to change at Gold Star's discretion, but cannot increase by more than 1% in any 12-month period, and cannot exceed 7% of the franchisee's gross sales without written consent.
These fees are typically paid weekly through preauthorized debit arrangements. Franchisees must ensure the accuracy of their gross sales figures, as these figures are used to calculate the continuing franchise fees and brand building fees. If a franchisee fails to report their gross sales on time, Gold Star is authorized to debit an amount equal to the average of the fees payable during the preceding three-month period.