Is the Inventory and Other Materials fee refundable for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Supplier Payment Assignment5 | 100% of product and/or advertising rebates or allowances from certain system- wide suppliers | Assigned when Franchise Agreement is signed | Payable to GSCAA Non-refundable |
| Inventory and Other Materials6 | See Item 8 of this disclosure document | On delivery or as established by designated supplier | Payable to designated supplier Non-refundable |
| Manual Fee | $100 for any additional copy | On delivery | Payable to Gold Star Non-refundable |
| Additional Training Fee7 | Reasonable training fee at our current rates. Also, you must reimburse us for our reasonable out of pocket costs (travel, accommodations, etc.) | Before opening or after you open your franchised Restaurant for business. | Payable to Gold Star Non-refundable |
| Approval Fees8 | Not to exceed reasonable cost of inspection and actual cost of testing or evaluation | On demand | Payable to Gold Star Non-refundable |
| Transfer Fee9 | Set by Gold Star in its discretion - currently $3,500 | Before consummation of transfer or sale | Payable to Gold Star by any transferee (not the Franchisor) Non-refundable |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Inventory and Other Materials fee is non-refundable. This fee is paid to the designated supplier upon delivery or as established by the supplier. Item 8 of the FDD provides further details regarding this fee.
This means that once a Gold Star franchisee pays for the initial inventory and other required materials, they cannot get a refund on this payment from Gold Star. This is a fairly standard practice in franchising, as these materials are typically provided by third-party suppliers.
Prospective franchisees should carefully review Item 8 of the FDD to understand the full scope of the Inventory and Other Materials fee, including the amounts, payment terms, and the designated suppliers. Understanding these details is crucial for budgeting and managing the initial investment required to start a Gold Star franchise.