What is the daily Operating Deficiency Fee charged by Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
n-refundable |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Renewal Fee10 | Set by Gold Star in its discretion – currently $5,000 | Prior to renewal of franchise agreement | Payable to Gold Star Non-refundable |
| 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 |
| Operating Fee11 | 125% of Gold Star, or its designees, cost of operation | Same as Continuing Franchise Fee | Payable to Gold Star or its designated operator Non-refundable |
| 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 |
| Audit Fee13 | Cost of audit plus interest and late payment charge on underpayment | On demand | Payable to Gold Star Non-refundable |
| Liquidated Damages upon Breach of Confidentiality14 | $100,000 for each breach | On demand | Payable to Gold Star Non-refundable |
| Indemnification15 | Amount of claim, loss, damages, etc. | On demand | Payable to Gold Star and its officers, directors, employees, agents, affiliates, successors and assigns Non-refundable |
| Late Payment Charge16 | Interest of lesser of 1½% per month or the maximum rate permitted by law, plus $25 | On de |
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 per day is charged if a franchisee fails to correct operational deficiencies after the cure period. This fee is payable to Gold Star or its designated operator and is non-refundable.
This means that if a Gold Star franchisee does not meet the brand's operational standards and fails to rectify the issues within the given timeframe, they will incur a daily penalty of $100. This can quickly add up and become a significant expense, especially if the deficiencies are not promptly addressed. The fee continues to accrue for each day the issues remain unresolved.
Prospective franchisees should understand the importance of adhering to Gold Star's operational standards and the financial implications of failing to do so. It is crucial to have systems in place to ensure compliance and to address any deficiencies quickly to avoid incurring these daily fees. Franchisees should clarify the specific operational standards and the typical cure periods offered by Gold Star to fully understand their obligations and potential risks.