What is the late payment administrative charge for Gold Star franchisees?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
ents Unconditional**. All amounts payable by FRANCHISEE to the COMPANY or any affiliate under or in connection with this Agreement shall be made without set-off or deduction for any reason whatsoever (including but not limited to any alleged breach by the COMPANY of any obligations to FRANCHISEE), and if not paid when due shall bear interest from the date due until paid at the rate of one and one-half percent (1.5%) per month, or the maximum rate permitted by law, whichever is less. Any payment not made when due
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if a franchisee fails to make payments when due, they will be subject to a late payment administrative charge of $100.
This charge is in addition to Gold Star's right to terminate the Franchise Agreement and pursue other remedies for the late payment. Gold Star also has the sole discretion to apply any payments from the franchisee to any past due obligations in whatever manner it deems appropriate.
This means that prospective Gold Star franchisees need to be aware of the importance of making timely payments to avoid incurring this administrative charge and potential further penalties. Franchisees should ensure they have sufficient funds available to cover all payments to Gold Star to avoid any late payment issues.