What fees must a Gold Star franchisee pay to operate a Store in an additional location?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.4 Additional Stores.
The rights granted FRANCHISEE under this Agreement relate solely to the Retail Location.
In order to operate a Store in an additional location, FRANCHISEE must apply for and be granted approval (the COMPANY is not obligated to grant such approval) to purchase a separate franchise, satisfactorily complete the site selection process and sign and comply with a separate franchise agreement (which must be the COMPANY's then current form
- of franchise agreement) and pay additional fees equal to the COMPANY's then current fees, including but not limited to initial franchise fees, continuing franchise fees, advertising and other fees.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee needs to apply for and be granted approval to purchase a separate franchise in order to operate a Store in an additional location. Gold Star is not obligated to grant such approval. The franchisee must also satisfactorily complete the site selection process and sign and comply with a separate franchise agreement.
This separate franchise agreement must be Gold Star's then-current form of franchise agreement. The franchisee must also pay additional fees equal to Gold Star's then-current fees. These fees include, but are not limited to, initial franchise fees, continuing franchise fees, advertising fees and other fees.
In essence, expanding to another location requires the franchisee to essentially start the franchising process over again, albeit as an existing franchisee. This includes meeting all current requirements and paying all associated fees, which can be a significant investment. Prospective franchisees should carefully consider these costs and requirements when planning for potential expansion.