When is the initial franchise fee due to Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount for Free Standing Building | Amount for Inline Space | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee2 | $10,000 to $50,000 | $10,000 to $50,000 | Cashier’s Check | At signing of the Franchise Agreement | Gold Star |
Source: Item 7 — Estimated Initial Investment (FDD pages 18–21)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the initial franchise fee, which ranges from $10,000 to $50,000, is due at the signing of the Franchise Agreement. The method of payment must be in the form of a cashier's check, and the payment is to be made directly to Gold Star.
This means that a prospective Gold Star franchisee needs to have the full initial franchise fee amount available as a cashier's check when they are ready to sign the franchise agreement. This is a standard practice in franchising, as the initial fee secures the franchisee's rights to operate under the Gold Star brand and utilize their system. It's important to note that this fee is typically non-refundable, as stated elsewhere in the FDD.
Therefore, before signing the agreement, candidates should ensure they have completed their due diligence and are fully committed to the Gold Star franchise. Multi-unit franchisees should also refer to Item 5 in the FDD for information on Gold Star's graduated franchise fee structure.