How often is the continuing franchise fee for a Gold Star franchise payable?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise required in the Manual, the continuing franchise fee shall be payable by FRANCHISEE to the COMPANY on or before Tuesday of each week based on the Gross Sales for the preceding week ending on Sunday pursuant to the preauthorized debit arrangement described in Section 8.3, below.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the continuing franchise fee is payable on a weekly basis. Specifically, the franchise agreement states that the continuing franchise fee is due on or before Tuesday of each week. This payment is based on the Gross Sales from the preceding week, which ends on Sunday.
Gold Star requires franchisees to make these payments through a preauthorized debit arrangement. This means that the company will automatically withdraw the required amount from the franchisee's designated bank account each week. This electronic debit system ensures timely and consistent payments of the continuing franchise fee.
Franchisees must maintain a sufficient balance in their account to cover these weekly deductions. Failure to do so is considered a default in payment, which can lead to penalties or other consequences as outlined in the franchise agreement. This weekly payment schedule and electronic debit system are designed to streamline the payment process and ensure that Gold Star receives its continuing franchise fees in a timely manner.