What fee must a Gold Star franchisee pay upon renewal of the franchise agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
8.1.6 The applicable initial or renewal fees set forth in Sections 8.1.1 through 8.1.5 above shall be paid upon execution of this Agreement, is fully earned by the COMPANY upon execution and delivery of this Agreement and is nonrefundable.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee entering into a renewal agreement must pay a renewal fee of $5,000. This fee is in place of the initial franchise fee that would otherwise be required under a new franchise agreement. The renewal fee is due upon the execution of the renewal agreement.
Gold Star requires that all monetary obligations to the company and its affiliates are satisfied before renewal. Franchisees must also be compliant with the standards set forth in the company's manual, including any required modernization, renovations, repairs, and maintenance to the retail location. Additionally, the franchisee, manager, operator, or other key employee must satisfactorily complete any required initial or refresher training programs.
Within 30 days of receiving notice of intent to renew, Gold Star will provide the franchisee with a copy of the current franchise documents for restaurants or a notice of denial of renewal. The terms of the new franchise agreement may differ materially from the original agreement, potentially including higher continuing franchise fees, advertising expenditures, different terms, different protected territory, and different renewal rights.
It is important to note that the renewal fee is fully earned by Gold Star upon execution and delivery of the agreement and is nonrefundable. Prospective franchisees should carefully review the terms of the renewal agreement and ensure they can meet all obligations before exercising their option to renew.