For an inline space Gold Star franchise, what is the estimated range for building, construction, and leasehold improvements?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
YOUR ESTIMATED INITIAL INVESTMENT 1
| 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 |
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 estimated cost for building, construction, and leasehold improvements for an inline space ranges from $287,618 to $400,000. These costs are paid as arranged and are due before opening to parties specified in Note 4. Note 4 in Item 7 states that the costs of renovation or construction, and improvements, for purchased or leased premises may vary tremendously and cannot be estimated with any accuracy.
It is important to note that this estimate is for an average restaurant size of 2,300 square feet, excluding special purpose outlets, and does not include the cost of land or site improvements. The actual investment can vary significantly based on factors specific to the restaurant's location, local real estate market values, size, physical characteristics, financial condition, business decisions, and negotiating success.
Prospective franchisees should carefully consider these factors and consult with business advisors to assess the potential costs accurately. Given the wide range of potential costs and the disclaimer that these figures cannot be estimated with accuracy, it is crucial to conduct thorough due diligence and obtain detailed quotes from contractors and suppliers to develop a realistic budget for building, construction, and leasehold improvements.