When is the relocation reimbursement due to Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 demand | Payable to Gold Star 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, if a franchisee relocates their restaurant, they are required to reimburse Gold Star for reasonable out-of-pocket costs associated with the relocation. This reimbursement is due promptly after the franchisee receives an invoice from Gold Star. This fee is non-refundable.
This means that a Gold Star franchisee needs to be prepared to cover these relocation costs quickly once invoiced. The FDD does not specify what 'reasonable out-of-pocket costs' might include, so it would be prudent for a prospective franchisee to clarify with Gold Star what types of expenses this covers (e.g., travel, lodging, consulting fees) and how these costs are documented.
Understanding the potential expenses and having funds readily available is crucial for managing the relocation process smoothly and maintaining a positive financial standing with Gold Star. Franchisees should factor in these potential relocation expenses when considering a move.