When are real property and site work costs due for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 Franchise Agreement | Gold Star |
| Real Property & Site work Costs | (See Note 1) | (See Note 1) | As Arranged | Before Opening | Lessor or Property Owner; Other Third Parties |
Source: Item 7 — Estimated Initial Investment (FDD pages 18–21)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, real property and site work costs are due before opening a franchise location. The specific timing and method of payment are arranged between the franchisee, the lessor or property owner, and other third parties.
For a prospective Gold Star franchisee, this means these costs are a critical upfront investment. Because the costs are determined by arrangements with lessors or property owners, the franchisee will need to budget accordingly before opening. Note 1 of Item 7 indicates that the information provided is estimated and is based on an average Restaurant size of 2,300 square feet (excluding Special Purpose Outlets) and not including the cost of land or site improvements. Estimates are provided for both a free-standing building or inline at a shopping center. The actual investment will vary depending upon a variety of factors peculiar to the Restaurant, including location, local real estate market values, size and other physical characteristics, and the franchisee's financial condition, business decisions and negotiating success and other factors.
Since real property costs can vary significantly based on location and other factors, franchisees should carefully research and negotiate these expenses. Gold Star does not finance any fees or expenses. Understanding these costs and payment terms is essential for managing the initial investment and ensuring a smooth opening process.