What is the initial franchise fee for a first-time Gold Star franchisee?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
ial Fees**
Initial Franchise Fee.
All Franchisees who are purchasing their first Gold Star Franchise must pay a $50,000 lump sum when the Franchisee signs the Franchise Agreement. Existing Franchisees who are purchasing their second, third or fourth Gold Star Franchise must pay a $25,000 lump sum when the Franchisee 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 of $25,000 or the amount such Franchisee would otherwise be required to pay if such restaurant is a "new" restaurant, when the Franchisee signs the Franchise Agreement.
You must pay the initial franchise fee in full when you sign the Franchise Agreement. The initial franchise fee is fully earned by Gold Star upon receipt and is
Source: Item 5 — Initial Fees (FDD pages 11–12)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a new franchisee purchasing their first Gold Star franchise must pay an initial franchise fee of $50,000. This fee is a one-time, lump-sum payment due when the Franchise Agreement is signed.
It is important to note that this fee is fully earned by Gold Star upon receipt and is non-refundable under any circumstances. This means that even if the franchise does not open or the agreement is terminated, the franchisee will not receive a refund of the initial franchise fee. This is a standard practice in franchising, as the initial fee compensates the franchisor for the costs associated with granting the franchise, including training, site selection assistance, and brand development.
Existing Gold Star franchisees who are purchasing additional franchises receive a discounted initial franchise fee. Franchisees buying their second, third, or fourth Gold Star franchise pay $25,000, while those purchasing their fifth or more pay $10,000. Additionally, franchisees taking over a location that operated as a Gold Star restaurant within the previous six months pay the lesser of $25,000 or the fee they would pay for a new restaurant.