What is the maximum increase allowed for the Gold Star Brand Building Fee in a 12-month period?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 4: The amount of the Brand Building Fee is determined in Gold Star's sole discretion. However, the Brand Building Fee will not be increased by more than 1% in any 12-month period. In many cases, the Brand Building Fee assessed for the operation of a Special Purpose Outlet, as defined in Item 12 below, is 4% of Gross Sales.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Brand Building Fee is determined at Gold Star's discretion. However, there is a limit to how much this fee can increase within a year.
The document states that Gold Star will not increase the Brand Building Fee by more than 1% in any 12-month period. This provides some predictability for franchisees in terms of budgeting and managing their expenses related to the Brand Building Fee.
It's important to note that while the increase is capped at 1% per year, the actual amount of the Brand Building Fee can vary, especially for Special Purpose Outlets, where it may be assessed as a percentage of gross sales. Franchisees should clarify with Gold Star how the Brand Building Fee is calculated for their specific type of outlet and factor in potential increases when projecting their costs.