Who should the payment for licenses and permits be made to when opening a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
YOUR ESTIMATED INITIAL INVESTMENT 1
| Type of Expenditure | Amount for Free Standing Building | Amount for Inline Space | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee2 | $10,000 to $50,000 | $10,000 to $50,000 | Cashier’s Check | At signing of the |
Source: Item 7 — Estimated Initial Investment (FDD pages 18–21)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, payments for licenses and permits should be made to licensing authorities. The estimated cost for licenses and permits ranges from $1,350 to $11,972 for a free-standing building and $1,000 to $5,000 for an inline space. These payments are typically arranged and due before beginning operations.
It is important for prospective Gold Star franchisees to budget accordingly for these expenses, as they can vary significantly depending on the location and specific requirements of the licensing authorities. Franchisees should contact local authorities to determine the exact costs for their specific location. These costs are part of the initial investment needed to start the franchise.
Understanding these costs upfront is crucial for financial planning. Failing to account for the full range of potential expenses could lead to underfunding and potential financial difficulties during the initial phase of the business. Therefore, thorough research and communication with local licensing authorities are essential steps in the due diligence process for any prospective Gold Star franchisee.