When is the Relocation fee due for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
n-refundable |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Renewal Fee10 | Set by Gold Star in its discretion – currently $5,000 | Prior to renewal of franchise agreement | Payable to Gold Star Non-refundable |
| Relocation | You will reimburse us for our reasonable out-of-pocket costs concerning the relocation | Promptly after receiving an invoice from Gold Star | Payable to Gold Star Non-refundable |
| 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 |
| Operating Deficiency Fee12 | Daily fee of $100 for each day you fail to cure operating deficiencies after expiration of the cure period | On demand | Payable to Gold Star or its designated operator Non-refundable |
| Audit Fee13 | Cost of audit plus interest and late payment charge on underpayment | On demand | Payable to Gold Star Non-refundable |
| Liquidated Damages upon Breach of Confidentiality14 | $100,000 for each breach | On demand | Payable to Gold Star Non-refundable |
| Indemnification15 | Amount of claim, loss, damages, etc. | On demand | Payable to Gold Star and its officers, directors, employees, agents, affiliates, successors and assigns Non-refundable |
| Late Payment Charge16 | Interest of lesser of 1½% per month or the maximum rate permitted by law, plus $25 | On de |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Relocation Fee is due promptly after you receive an invoice from Gold Star. This fee is to reimburse Gold Star for their reasonable out-of-pocket costs related to the relocation of your franchise.
This means that if you decide to move your Gold Star franchise location, you will be responsible for covering Gold Star's expenses associated with the relocation process. These costs could include things like travel, legal fees, and other administrative expenses incurred by Gold Star during the relocation.
It is important to note that the Relocation Fee is payable to Gold Star and is non-refundable. Therefore, a prospective franchisee should carefully consider the potential costs associated with relocation before deciding to move their franchise. Understanding the scope of 'reasonable out-of-pocket costs' is crucial, and franchisees should seek clarity from Gold Star regarding what specific expenses are covered under this fee to avoid unexpected financial burdens.