When is the initial franchise fee for a Gold Star franchise due?

According to Gold Star's 2025 Franchise Disclosure Document, the initial franchise fee is due in full when the franchisee signs the Franchise Agreement. The amount of this fee varies depending on whether the franchisee is purchasing their first Gold Star franchise, or if they are an existing franchisee purchasing additional locations. The fee also varies if the location has been operated as a Gold Star restaurant in the previous six months.

For a first-time Gold Star franchisee, the initial franchise fee is $50,000. Existing franchisees purchasing their second, third, or fourth Gold Star franchise pay a reduced fee of $25,000. Franchisees who are purchasing their fifth or more Gold Star franchise pay a further reduced fee of $10,000. If the Gold Star franchise will operate at a location where a Gold Star restaurant has operated within the previous six months, the fee is the lesser of $25,000 or the amount the franchisee would otherwise be required to pay for a new restaurant.

It is important to note that the initial franchise fee is fully earned by Gold Star upon receipt and is non-refundable under any circumstances. This means that once the fee is paid, it will not be returned to the franchisee, regardless of whether the restaurant opens or the franchise agreement is terminated. This is a common practice in franchising, as the initial fee compensates the franchisor for the costs associated with granting the franchise and providing initial support.