When is the Supplier Payment Assignment fee due for a Gold Star franchise?

According to the 2025 Gold Star Franchise Disclosure Document, the Supplier Payment Assignment fee is due when the Franchise Agreement is signed. This fee is equal to 100% of the product and/or advertising rebates or allowances from certain system-wide suppliers. The payment is made to GSCAA and is non-refundable.

This means that as a Gold Star franchisee, you will be required to assign all product and advertising rebates or allowances from designated suppliers to Gold Star or its designee. Currently, this assignment is required with the soft drink supplier, where Gold Star has negotiated a group purchase arrangement. While the Franchise Agreement does not obligate Gold Star to do so, the current practice is for these payments, along with rebate or allowance payments from suppliers for company-owned restaurants, to be made to GSCAA for use in the Brand Building Fund. However, Gold Star retains the right to change this practice without notice.

Prospective franchisees should note that the terms with designated suppliers are currently Net 7 or Net 14. However, suppliers may demand cash on delivery if payments are late or not made. This assignment ensures that Gold Star can leverage its collective buying power and allocate resources to the Brand Building Fund, which supports marketing and brand development initiatives. Franchisees should factor this assignment into their financial planning, as it impacts the rebates and allowances they would otherwise receive directly from suppliers.