How does Gold Star determine the amount of the transfer fee?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
ood moral character and reputation, satisfactory credit ratings, acceptable business qualifications, satisfactory completion of training programs, and the ability to comply fully with the terms of the then-current franchise agreement;
- 13.4.4 The transferee will enter into a written assumption, in a form satisfactory to the COMPANY, assuming and agreeing to discharge all of
- FRANCHISEE's obligations under this Agreement prior to and after the date of assumption;
- 13.4.5 The transferee shall have paid the COMPANY its then-current transfer fee. The
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the transfer fee is determined by Gold Star and can change over time at the company's discretion. As of the date of the agreement, the transfer fee is $3,500, but this amount is subject to change.
This means that if a franchisee decides to sell their Gold Star franchise to a new owner, the new owner will generally have to pay Gold Star a transfer fee. The exact amount of this fee is not fixed and Gold Star has the right to adjust it. The FDD specifies that the transferee must execute Gold Star's current franchise agreement, but will not have to pay an initial franchise fee.
Prospective franchisees should be aware that the transfer fee could increase in the future, which would affect the financial implications of selling their franchise. It is important to confirm the current transfer fee with Gold Star before making any decisions about transferring ownership. Franchisees should also carefully review the conditions under which a transfer is allowed, as outlined in the franchise agreement.