Who pays the Transfer Fee to Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee9 | Set by Gold Star in its discretion - currently $3,500 | Before consummation of transfer or sale | Payable to Gold Star by any transferee (not the Franchisor) 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 Transfer Fee is payable to Gold Star by the transferee, not the franchisor. The Transfer Fee is set by Gold Star in its discretion; currently, the fee is $3,500. This fee is due before the transfer or sale is consummated and is non-refundable.
In simpler terms, if a Gold Star franchisee decides to sell their franchise to someone else (the transferee), the responsibility for paying the Transfer Fee falls on the buyer. This fee covers Gold Star's administrative costs and review process associated with approving the transfer of ownership. The fee must be paid before the deal is finalized.
As the Transfer Fee is non-refundable, the transferee should be certain about their decision to acquire the franchise before paying the fee to Gold Star. This is a standard practice in franchising, as the franchisor needs to vet and approve any new franchisee to ensure they meet the brand's standards and are a good fit for the system.