What is the initial franchise fee for an existing Gold Star franchisee purchasing their fifth or more franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisee signs the Franchise Agreement. Existing Franchisees who are purchasing their fifth or more Gold Star Franchise must pay a $10,000 lump sum when the Franchisee signs the Franchise Agreement. All Franchisees who are purchasing a Gold Star Franchise which will be operated at a location at which a Gold Star restaurant has been operated during the previous six months, will pay the lesser
Source: Item 5 — Initial Fees (FDD pages 11–12)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the initial franchise fee varies depending on whether the franchisee is new or existing, and also on the location's history. For existing Gold Star franchisees purchasing their fifth or more franchise, the initial franchise fee is $10,000. This fee is paid as a lump sum when the Franchise Agreement is signed.
This reduced fee for experienced franchisees reflects a common practice in franchising, where franchisors offer incentives to encourage existing franchisees to expand their operations. It acknowledges the franchisee's proven track record and familiarity with the Gold Star system.
The initial franchise fee is fully earned by Gold Star upon receipt and is non-refundable under any circumstances. Prospective franchisees should be aware of this non-refundable policy and carefully consider their decision before signing the Franchise Agreement.