What does the Indemnification fee cover for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
n-refundable |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Renewal Fee10 | Set by Gold Star in its discretion – currently $5,000 | Prior to renewal of franchise agreement | Payable to Gold Star Non-refundable |
| Relocation | You |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the indemnification fee covers the amount of any claim, loss, or damages. This fee is payable to Gold Star and its officers, directors, employees, agents, affiliates, successors, and assigns. The fee is non-refundable and due on demand.
Essentially, as a Gold Star franchisee, you are responsible for protecting Gold Star from any liabilities or losses that arise from your business operations. This could include a wide range of issues, such as lawsuits, damages, or other claims. The amount you would have to pay is equivalent to the amount of the claim, loss, or damages incurred by Gold Star.
This is a standard clause in most franchise agreements, designed to protect the franchisor from liabilities caused by the franchisee's actions. It is important for a prospective Gold Star franchisee to fully understand the scope of this indemnification and to ensure they have adequate insurance coverage to protect themselves against potential claims.