To whom is the Supplier Payment Assignment fee payable for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Supplier Payment Assignment5 | 100% of product and/or advertising rebates or allowances from certain system- wide suppliers | Assigned when Franchise Agreement is signed | Payable to GSCAA 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, the Supplier Payment Assignment fee is payable to GSCAA. This fee is equivalent to 100% of any product and/or advertising rebates or allowances that a franchisee receives from system-wide suppliers.
This assignment is triggered when the Franchise Agreement is signed, and the payments are non-refundable. Gold Star mandates that franchisees assign these rebates or allowances, particularly those from soft drink suppliers with whom Gold Star has negotiated group purchasing arrangements.
While the Franchise Agreement does not obligate Gold Star to do so, the current practice is for these assigned franchisee supplier payments, along with rebate or allowance payments from suppliers for company-owned restaurants, to be directed to GSCAA. GSCAA then uses these funds for the Brand Building Fund. However, Gold Star retains the right to modify this practice without prior notice to franchisees, which means the destination of these payments could change during the franchise term.