What is the insufficient funds fee charged by Gold Star for each unsuccessful attempt to withdraw Continuing Franchise Fees or Brand Building Fees?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
n-refundable |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Insufficient Funds Fee | $50 for each unsatisfied attempt to draw Continuing Franchise Fee or Brand Building Fees from your account by direct deposit. | As incu |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if a franchisee's account has insufficient funds when Gold Star attempts to withdraw Continuing Franchise Fees or Brand Building Fees via direct deposit, the franchisee will incur a fee. This fee is charged for each unsuccessful attempt to draw funds from the franchisee's account.
The insufficient funds fee is $50 for each unsuccessful attempt. This fee is payable to Gold Star and is non-refundable. The fee is incurred as it happens, meaning each time an attempt to withdraw funds fails due to insufficient funds, the fee is applied.
This policy is fairly standard in franchising, as franchisors often implement fees to cover administrative and banking costs associated with failed payment attempts. Franchisees should ensure they maintain sufficient funds in their designated bank accounts to avoid these charges. Furthermore, franchisees should proactively communicate with Gold Star if they anticipate any issues with payment to avoid additional fees or potential disruptions in their franchise operations.