How is the Renewal Fee for a Gold Star franchise determined?
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 S |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Renewal Fee is set at the discretion of Gold Star. Currently, the renewal fee is $5,000. This fee is payable prior to the renewal of the franchise agreement and is non-refundable.
This means that while the current fee is fixed, Gold Star retains the right to change the renewal fee amount when a franchise agreement is up for renewal. The franchisee will need to pay the renewal fee in order to continue operating under the Gold Star brand. Because the fee is non-refundable, the franchisee will not get this money back even if the renewal is not ultimately granted.
Franchise agreements typically include renewal options, but the specific terms can vary widely. It is important to note that Note 10 in Item 6 states that the renewal is subject to conditions specified in Section 16 of the Franchise Agreement. A prospective franchisee should carefully review Section 16 of the Franchise Agreement to understand the conditions for renewal and whether Gold Star might deny a renewal request.