When is the Operating Deficiency Fee due for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
n-refundable |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Renewal Fee10 | Set by Gold Star in its discretion – currently $5,000 | Prior to renewal of franchise agreement | Payable to Gold Star Non-refundable |
| Relocation | You will reimburse us for our reasonable out-of-pocket costs concerning the relocation | Promptly after receiving an invoice from Gold Star | Payable to Gold Star Non-refundable |
| Operating Fee11 | 125% of Gold Star, or its designees, cost of operation | Same as Continuing Franchise Fee | Payable to Gold Star or its designated operator Non-refundable |
| Operating Deficiency Fee12 | Daily fee of $100 for each day you fail to cure operating deficiencies after expiration of the cure period | On demand | Payable to Gold Star or its designated operator Non-refundable |
| Audit Fee13 | Cost of audit plus interest and late payment charge on underpayment | On demand | Payable to Gold Star Non-refundable |
| Liquidated Damages upon Breach of Confidentiality14 | $100,000 for each breach | On demand | Payable to Gold Star Non-refundable |
| Indemnification15 | Amount of claim, loss, damages, etc. | On demand | Payable to Gold Star and its officers, directors, employees, agents, affiliates, successors and assigns Non-refundable |
| Late Payment Charge16 | Interest of lesser of 1½% per month or the maximum rate permitted by law, plus $25 | On de |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, the Operating Deficiency Fee is due 'on demand.' This fee is levied if a franchisee fails to correct operational deficiencies within the allotted cure period.
The fee itself is $100 per day for each day the deficiencies remain uncorrected after the cure period expires. Gold Star, or its designated operator, is the recipient of this payment. It is important to note that this fee is non-refundable.
This 'on demand' payment term means that Gold Star can request immediate payment of the accrued fees. As a prospective franchisee, it is crucial to understand the specific operational standards and cure periods to avoid incurring these fees. Maintaining compliance with Gold Star's standards is essential to avoid unexpected financial burdens.