What is the deadline for paying the Gold Star brand building fee?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Unless otherwise required in the Manual or pursuant to Section 8.3 below, the Brand Building Fee shall be payable by FRANCHISEE to the COMPANY (or the COMPANY's designee) for the COMPANY's Brand Building Fund (as defined in Section 9.3)) 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 8.2, below.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Brand Building Fee is typically due on or before Tuesday of each week. This payment is based on the Gross Sales from the preceding week, which ends on Sunday.
Unless specified otherwise in the Manual or pursuant to Section 8.3, franchisees are expected to remit the Brand Building Fee to Gold Star (or their designee) for the Brand Building Fund. This payment schedule is facilitated through a preauthorized debit arrangement, as detailed in Section 8.2 of the FDD.
Franchisees are required to authorize Gold Star or a third-party supplier to directly access their weekly sales information from their POS system each Tuesday. If this electronic retrieval fails, the franchisee must manually provide the weekly sales report to Gold Star by Thursday. The Brand Building Fee is then calculated based on these sales reports. If a franchisee fails to provide the sales report by the specified deadline, Gold Star is authorized to debit an amount equal to the average of the Brand Building Fees payable during the preceding three-month period.