What is the daily amount of the Operating Deficiency Fee for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Operating Deficiency Fee12 | Daily fee of $100 for each day you fail to cure operating deficiencies after expiration of the cure period | On demand | Payable to Gold Star or its designated operator 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, an Operating Deficiency Fee of $100 is charged daily if a franchisee fails to correct operational deficiencies after the cure period expires. This fee is payable to Gold Star or its designated operator and is non-refundable.
In practical terms, this means that if a Gold Star franchisee's restaurant operations do not meet the franchisor's system standards, they will be given a period to correct these issues. If the deficiencies are not resolved within this cure period, the franchisee will incur a daily fee of $100 for each day the issues remain unaddressed. This can quickly add up and become a significant expense if the operational problems are not promptly resolved.
This fee structure incentivizes franchisees to maintain Gold Star's standards and address any operational issues quickly. It also provides Gold Star with a mechanism to recoup costs associated with monitoring and potentially intervening in underperforming locations. Prospective franchisees should understand the importance of adhering to Gold Star's operational guidelines and be prepared to take swift corrective action if any deficiencies are identified to avoid incurring these daily fees.