How is the Operating Fee for a Gold Star franchise calculated?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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 |
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 calculated as 125% of Gold Star's, or its designees, cost of operation. This fee is charged when Gold Star believes it is necessary to operate a franchise location that is not meeting the brand's operational standards.
This fee is due at the same time as the Continuing Franchise Fee. The funds are payable to Gold Star or its designated operator and are non-refundable.
This means that if a Gold Star franchisee fails to maintain the required operational standards, Gold Star has the right to step in and manage the restaurant. The franchisee would then be responsible for covering Gold Star's operational costs, plus an additional 25% of those costs. This is in addition to any other fees or penalties that the franchisee may incur for failing to meet operational standards, such as the Operating Deficiency Fee.