What is the estimated total initial investment range for a free-standing Gold Star restaurant?
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 signing of the Franchise Agreement | Gold Star | |
| Real Property & Site work Costs | (See Note 1) | (See Note 1) | As Arranged | Before Opening | Lessor or Property Owner; Other Third Parties | |
| Furniture, Fixtures and | $109,100 to | $108,368 to | As Arranged | Before Opening | Approved | |
| Equipment3 | $305,379 | $220,000 | Suppliers | |||
| Building, Construction and Leasehold Improvements4 | $287,930 to $1,207,022 | $287,618 to $400,000 | (See Note 4) | (See Note 4) | (See Note 4) | |
| Utility Deposits | $1,000 to $3,000 | $1,000 to $3,000 | As Arranged | Before Opening | Suppliers and Utilities | |
| Architectural and | $14,000 to | $12,935 to | As Arranged | Before Opening | Approved | |
| Engineering Fees | $39,792 | $25,000 | Suppliers | |||
| Initial Inventory | $8,000 to $12,000 | $8,000 to $12,000 | As Arranged | Before Opening | Gold Star, Approved Suppliers | |
| Insurance | $1,000 to $3,000 | $1,000 to $3,000 | As Arranged | Before Beginning Operations | Insurance Companies |
| Type of Expenditure | Amount for Free Standing Building | Amount for Inline Space | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Signs and Awning | $38,737 to $46,285 | $31,510 to $38,737 | As Arranged | Before Opening | Approved Contractors |
| Training5 | $5,500 to $10,000 | $5,500 to $10,000 | As Arranged | Before Opening | Employees, Miscellaneous Vendors |
| Licenses & Permits | $1,350 to $11,972 | $1,000 to $5,000 | As Arranged | Before Beginning Operations | Licensing Authorities |
| Legal & Accounting | $2,500 | $2,500 | As Arranged | Before Beginning Operations | Attorney, Accountant |
| Office Equipment and | $1,000 | $1,000 | As Arranged | Before Opening | Suppliers |
| Supplies | |||||
| Grand Opening | $10,000 | $10,000 | As Arranged | Within 3 months | Miscellaneous |
| Advertising6 | of Opening | Vendors | |||
| Additional Funds - 3 Months7 | $15,000 to $30,000 | $15,000 to $30,000 | As Arranged | As Incurred | Gold Star, Employees, Suppliers, Utilities, Insurers, Professionals, Etc. |
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 total initial investment for a free-standing building ranges from $506,117 to $1,730,950. This investment covers various expenses, including the initial franchise fee, furniture, fixtures, equipment, building construction, leasehold improvements, utility deposits, architectural and engineering fees, initial inventory, insurance, signs and awnings, training, licenses and permits, legal and accounting costs, office equipment and supplies, grand opening advertising, and additional funds for the first three months of operation.
Prospective franchisees should note that the real property and site work costs are not included in this estimate, as they can vary significantly depending on location and other factors. Gold Star estimates that minimum rent for a restaurant (excluding Special Purpose Outlets) is between $36,000 and $90,000 per year. The cost of land for a purchased site could also vary tremendously. The FDD indicates that the typical Gold Star restaurant (excluding Special Purpose Outlets) utilizes approximately 2,300 square feet.
Furthermore, the document emphasizes that the actual investment may vary based on factors specific to the restaurant, such as location, real estate market values, size, physical characteristics, and the franchisee's financial condition and negotiating success. The estimates provided are based on an average restaurant size of 2,300 square feet. Franchisees should carefully review these figures with a business advisor before making a decision to purchase a Gold Star franchise, as additional expenses may arise during the initial months of operation.