Is the Supplier Payment Assignment fee refundable 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 non-refundable. This fee, which is 100% of product and/or advertising rebates or allowances from certain system-wide suppliers, is assigned when the Franchise Agreement is signed and is payable to GSCAA.
This means that once a Gold Star franchisee signs the Franchise Agreement, they are obligated to assign all product and advertising rebates or allowances from designated suppliers to Gold Star or its designee, and the payment is non-refundable. Currently, these assignments are required with respect to Gold Star's soft drinks supplier, with whom Gold Star has negotiated a group purchase arrangement.
Gold Star's current practice is to have the assigned Franchisee supplier payments made (and to have all of the rebate or allowance payments from those suppliers receivable by Gold Star for company-owned Restaurants made) to GSCAA for use in the Brand Building Fund. Gold Star retains the right to modify this practice without prior notification to its franchisees.