What form of payment is required for the Gold Star franchise renewal fee?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
16.1.8 At the time of execution of the new franchise agreement pursuant to subsection 16.1.7 above, FRANCHISEE delivers to the COMPANY the then current renewal fee by certified check, such renewal fee to be in lieu of the initial franchise fee required under the new franchise agreement.
8.3.2 FRANCHISEE will complete and execute an "Authorization for Electronic Fund Transfers" form and any other form provided by the COMPANY for the purpose of authorizing electronic debits, submit any information required by the COMPANY for such authorization, comply with procedures specified by the COMPANY, and perform such additional acts as may be necessary to accomplish payment by electronic fund transfer.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the renewal fee must be paid via certified check. Specifically, at the time of executing the new franchise agreement for renewal, the franchisee must deliver the then-current renewal fee to Gold Star by certified check. This renewal fee is in place of the initial franchise fee that would otherwise be required under the new franchise agreement.
Furthermore, Gold Star franchisees are obligated to complete an "Authorization for Electronic Fund Transfers" form, which allows Gold Star to initiate debit entries for various fees, including the renewal fee. Franchisees must also maintain a business account capable of electronic debits and ensure sufficient funds are available for all payments. This electronic transfer authorization coexists with the certified check requirement for the renewal fee itself.
In practice, this means that while most fees can be paid via electronic fund transfer, the renewal fee for a Gold Star franchise specifically requires a certified check. This may be due to the size of the payment or to ensure guaranteed funds. A prospective franchisee should be aware of this specific payment requirement when planning for their franchise renewal.