What is the maximum initial franchise fee a Gold Star franchisee would pay for a transferred restaurant?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
y the COMPANY, including without limitation, downloading and subscribing to third-party software, and will from time to time execute such agreements and/or acknowledge and agree to comply with such policies concerning the use of the extranet as the COMPANY may prepare.
8. FRANCHISE FEES AND OTHER PAYMENTS.
- 8.1 Payments by Franchisee. In consideration of the issuance of the franchise granted hereunder, FRANCHISEE shall pay to the COMPANY:
- 8.1.1 If FRANCHISEE is opening a New Restaurant (defined below) and FRANCHISEE is not party to one or more franchise agreements with the COMPANY, an initial franchise fee in the amount of Fifty Thousand Dollars ($50,000.00);
- 8.1.2 If FRANCHISEE is opening a New Restaurant and FRANCHISEE is currently party to at least one (1) and less than five (5) franchise agreements with the COMPANY and is not, as of the date hereof, in default under any such agreement(s), an initial franchise fee of Twenty Five Thousand Dollars ($25,000.00),
- 8.1.3 If FRANCHISEE is opening a New Restaurant and FRANCHISEE is currently party to five (5) or more franchise agreements with the COMPANY and is not, as of the date hereof, in default under any such agreements, an initial franchise fee of Ten Thousand Dollars ($10,000.00), and
- 8.1.4 If FRANCHISEE is entering
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the initial franchise fee for a transferred restaurant depends on the franchisee's existing agreements with the company. The maximum initial franchise fee a franchisee would pay for a transferred restaurant is $25,000.
Specifically, if a franchisee is opening a transferred restaurant and is not in default under any other franchise agreements with Gold Star, the initial franchise fee is the lesser of either the fee they would pay for a new restaurant or $25,000. The initial franchise fee for a new restaurant ranges from $10,000 to $50,000 depending on how many existing Gold Star franchises the franchisee already operates.
Therefore, even if the franchisee would be required to pay a $50,000 initial franchise fee for a new restaurant, the fee is capped at $25,000 for a transferred restaurant. This represents a potential savings for franchisees who choose to acquire an existing Gold Star location rather than building a new one.