factual

When is the renewal fee for a Gold Star franchise due?

Gold_Star Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 16.1.8 At the time of execution of the new franchise agreement pursuant to subsection 16.1.7 above, FRANCHISEE delivers to the COMPANY the then current renewal fee by certified check, such renewal fee to be in lieu of the initial franchise fee required under the new franchise agreement.

Source: Item 23 — Receipts (FDD pages 53–163)

What This Means (2025 FDD)

According to Gold Star's 2025 Franchise Disclosure Document, the renewal fee is due at the time of execution of the new franchise agreement. Specifically, the franchisee must deliver the then-current renewal fee to Gold Star by certified check when signing the new franchise agreement, as per subsection 16.1.8. This renewal fee is in place of the initial franchise fee that would otherwise be required under the new franchise agreement.

To renew their Gold Star franchise, franchisees must meet several conditions. Prior to renewal, all of the franchisee's accrued monetary obligations to Gold Star and its affiliates must be satisfied and met in a timely manner throughout the agreement's term. Franchisees must also comply with the standards set forth in Gold Star's Manual, including completing any required modernization, renovations, repairs, and maintenance to the retail location to meet the company's current standards at the time of renewal. Additionally, the franchisee, along with any manager, operator, or key employee, must satisfactorily complete any required initial or refresher training programs.

Within 30 days of receiving notice of intent to renew, Gold Star will provide the franchisee with a copy of the current franchise documents for restaurants or a notice of denial of renewal. The terms of the new franchise agreement may differ significantly from the original, potentially including higher fees, different terms, and a different protected territory. If a franchisee fails to meet all the renewal conditions, it will be considered an election not to renew the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.