Who pays the transfer fee in a Gold Star franchise transfer?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Supplier Payment Assignment5 | 100% of product and/or advertising rebates or allowances from certain system- wide suppliers | Assigned when Franchise Agreement is signed | Payable to GSCAA Non-refundable |
| Inventory and Other Materials6 | See Item 8 of this disclosure document | On delivery or as established by designated supplier | Payable to designated supplier Non-refundable |
| Manual Fee | $100 for any additional copy | On delivery | Payable to Gold Star Non-refundable |
| Additional Training Fee7 | Reasonable training fee at our current rates. Also, you must reimburse us for our reasonable out of pocket costs (travel, accommodations, etc.) | Before opening or after you open your franchised Restaurant for business. | Payable to Gold Star Non-refundable |
| Approval Fees8 | Not to exceed reasonable cost of inspection and actual cost of testing or evaluation | On demand | Payable to Gold Star Non-refundable |
| 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 transferee is responsible for paying the transfer fee. The transfer fee is set by Gold Star at their discretion; currently, the fee is $3,500. This fee must be paid to Gold Star before the transfer or sale is completed and is non-refundable.
This means that if a franchisee decides to sell their Gold Star franchise to someone else, the person buying the franchise (the transferee) will have to pay Gold Star a $3,500 transfer fee. This fee is in addition to any other costs associated with buying the franchise, such as the initial franchise fee or the cost of inventory and equipment.
It is important for prospective franchisees to understand who is responsible for paying this fee, as it can impact the overall cost of acquiring a Gold Star franchise. The transfer fee compensates Gold Star for the administrative costs and efforts involved in approving the transfer and ensuring that the new franchisee meets their standards. Franchisees should factor this fee into their financial planning when considering a transfer.