What was the total amount of continuing franchisee fees collected by Gold Star in 2022?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisees. Certain Company officers and employees serve as trustees of the advertising entity. The Company acts as a conduit in collecting advertising contributions from franchisees and disbursing the funds to the advertising entity. No income or expense is reflected on the Company's consolidated financial statements from this pass-through function. The Co
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total amount of continuing franchisee fees collected in 2022 was $157,959. This figure represents the royalties Gold Star received from its franchisees for the ongoing use of the Gold Star brand, systems, and support.
Continuing franchisee fees, often referred to as royalties, are a standard component of franchise agreements. These fees are typically calculated as a percentage of the franchisee's gross sales. In Gold Star's case, these fees are essential for the franchisor to maintain brand standards, provide ongoing support, and invest in marketing and innovation.
It's important to note that this figure reflects only the continuing franchisee fees and does not include other potential revenue streams for Gold Star, such as initial franchise fees, advertising fees, or revenue from company-owned restaurants. A prospective franchisee should consider this amount in conjunction with other financial data in the FDD to understand the overall financial health and revenue streams of the Gold Star franchise system.