On what day of the week is the continuing franchise fee due for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 fee is due on or before Tuesday of each week. This fee is based on the Gross Sales from the preceding week, which ends on Sunday. Gold Star uses a preauthorized debit arrangement for these payments.
Gold Star, or a designated third party, will typically obtain the franchisee's weekly sales information directly from the franchisee's point-of-sale (POS) system on or before Tuesday. However, if this automated process fails, the franchisee must provide the weekly sales report to Gold Star by Thursday. The continuing franchise fees and Brand Building Fees will then be calculated based on either the automatically obtained or manually submitted sales report.
Each Tuesday, Gold Star will debit the franchisee's account for the amount of the continuing franchise fees and Brand Building Fees, as well as any other amounts owed to Gold Star under the Franchise Agreement. If a franchisee fails to report their Gross Sales by Thursday, Gold Star is authorized to debit an amount equal to the average of the continuing franchise fees and Brand Building Fees from the preceding three-month period. Franchisees are responsible for ensuring the accuracy of their Gross Sales figures used for calculating these fees.