What is the estimated range for utility deposits for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
YOUR ESTIMATED INITIAL INVESTMENT 1
| Type of Expenditure | Amount for Free Standing Building | Amount for Inline Space | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee2 | $10,000 to $50,000 | $10,000 to $50,000 | Cashier’s Check | At |
Source: Item 7 — Estimated Initial Investment (FDD pages 18–21)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the estimated initial investment for utility deposits ranges from $1,000 to $3,000, whether the location is a free-standing building or an inline space. These deposits are typically paid before opening the Gold Star franchise to suppliers and utilities.
This means that prospective franchisees should budget between $1,000 and $3,000 for utility deposits as part of their initial startup costs. The actual amount will depend on the specific utility companies and their deposit requirements for the franchise location. It is important to note that these deposits are 'as arranged' meaning the franchisee will need to coordinate directly with utility providers to establish service and make the required payments.
Utility deposits are a standard part of opening a new business, including franchises. These deposits are intended to protect the utility company against non-payment of services. Franchisees should confirm the specific deposit amounts required by local utility companies during their due diligence process to ensure accurate budgeting. These deposits are often refundable once a satisfactory payment history has been established.