What costs are franchisees responsible for reimbursing Gold Star regarding relocation?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Relocation | You will reimburse us for our reasonable out-of-pocket costs concerning the relocation | Promptly after receiving an invoice from Gold Star | Payable to Gold Star Non-refundable |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are responsible for reimbursing Gold Star for reasonable out-of-pocket costs related to relocation. This reimbursement is due promptly after the franchisee receives an invoice from Gold Star. This fee is payable to Gold Star and is non-refundable.
This means that if Gold Star incurs expenses such as travel, lodging, or other direct costs when assisting a franchisee with relocating their Gold Star restaurant, the franchisee must cover those costs. The FDD specifies that these costs must be reasonable and out-of-pocket, suggesting that Gold Star cannot include markups or other indirect expenses in the reimbursement.
Prospective franchisees should clarify with Gold Star what specific types of relocation-related costs they might expect to reimburse. Understanding the potential scope of these expenses is crucial for financial planning and ensuring that the relocation process remains within budget.