Where in the Gold Star FDD can I find information regarding franchise fees and other payments?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
entities as determined by the COMPANY, in its sole discretion. If required by the COMPANY, FRANCHISEE will establish and maintain access to the extranet in the manner specified by the COMPANY, including without limitation, downloading and subscribing to third-party software, and will from time to time execute such agreements and/or acknowledge and agree to comply with such policies concerning the use of the extranet as the COMPANY may prepare.
8. FRANCHISE FEES AND OTHER PAYMENTS.
- 8.1 Payments by Franchisee. In consideration of the issuance of the franchise granted hereunder, FRANCHISEE shall pay to the COMPANY:
- 8.1.1 If FRANCHISEE is opening a New Restaurant (defined below) and FRANCHISEE is not party to one or more franchise agreements with the COMPANY, an initial franchise fee in the amount of Fifty Thousand Dollars ($50,000.00);
- 8.1.2 If FRANCHISEE is opening a New Restaurant and FRANCHISEE is currently party to at least one (1) and less than five (5) franchise agreements with the COMPANY and is not, as of the date hereof, in default under any such agreement(s), an initial franchise fee of Twenty Five Thousand Dollars ($25,000.00),
- 8.1.3 If FRANCHISEE is opening a New Restaurant and FRANCHISEE is currently party to five (5) or more franchise agreements with the COMPANY and is not, as of the date hereof, in default under any such agreements, an initial franchise fee of Ten Thousand Dollars ($10,000.00), and
- 8.1.4 If FRANCHISEE is entering into this Agreement as a renewal of a previous franchise agreement between FRANCHISEE and the COMPANY, a renewal fee of Five Thousand Dollars ($5,000.00).
- 8.1.5 If FRANCHISEE is opening a Transferred Restaurant (defined below), and is not, as of the date hereof, in default under any other franchise agreements between FRANCHISEE and the
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, information regarding franchise fees and other payments can be found in Section 8, titled "FRANCHISE FEES AND OTHER PAYMENTS." This section details the various fees a franchisee must pay to Gold Star.
Specifically, the FDD outlines initial franchise fees for new restaurants, which vary depending on the franchisee's existing agreements with Gold Star. For franchisees opening a new restaurant with no prior agreements, the initial fee is $50,000. Franchisees with at least one but fewer than five existing agreements pay $25,000, while those with five or more agreements pay $10,000. A renewal fee of $5,000 applies when renewing a previous franchise agreement. The fee for opening a transferred restaurant is the lesser of $25,000 or the initial franchise fee applicable to a new restaurant.
The FDD also specifies that these initial or renewal fees are due upon the execution of the franchise agreement. Once paid, these fees are considered fully earned by Gold Star and are nonrefundable. Additionally, the document discusses electronic debit payments for continuing franchise fees and Brand Building Fees, as well as the franchisee's obligation to maintain sufficient funds for these payments.