When is the Operating 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 |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Operating Fee is due at the same time as the Continuing Franchise Fee. The Operating Fee is 125% of Gold Star's, or its designees, cost of operation. This fee is payable to Gold Star or its designated operator and is non-refundable.
This fee is charged if the franchisee fails to conform the Restaurant operations to Gold Star's system standards, giving Gold Star the right, but not the obligation, to operate the Restaurant (or appoint a designee to operate) until the operations have been corrected to Gold Star's satisfaction.
Prospective franchisees should note that the Continuing Franchise Fee is a percentage of gross sales, as defined in Note 1 of Item 6. Therefore, the Operating Fee will be due at the same intervals as these payments. It is important to maintain operational standards to avoid this additional fee.