What is the estimated range for utility deposits for a Gold Star franchise with a free standing building?
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 for a free-standing building ranges from $1,000 to $3,000. This cost is paid as arranged before opening to suppliers and utilities.
Utility deposits are a common expense when starting a new business, including a franchise. These deposits are typically required by utility companies to secure services such as electricity, gas, water, and telecommunications. The amount of the deposit can vary based on factors such as the location of the franchise, the size of the building, and the utility company's policies.
Prospective Gold Star franchisees should budget for this expense and be prepared to pay the deposits before the restaurant opens. It is advisable to contact local utility companies early in the process to determine the exact deposit amounts required for the specific location. This will help in accurately estimating the total initial investment and avoiding any unexpected costs.