When is the Transfer Fee due 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 |
| Inventory and Other Materials6 | See Item 8 of this disclosure document | On delivery or as established by designated supplier | Payable to designated supplier Non-refundable |
| Manual Fee | $100 for any additional copy | On delivery | Payable to Gold Star Non-refundable |
| Additional Training Fee7 | Reasonable training fee at our current rates. Also, you must reimburse us for our reasonable out of pocket costs (travel, accommodations, etc.) | Before opening or after you open your franchised Restaurant for business. | Payable to Gold Star Non-refundable |
| Approval Fees8 | Not to exceed reasonable cost of inspection and actual cost of testing or evaluation | On demand | Payable to Gold Star Non-refundable |
| Transfer Fee9 | Set by Gold Star in its discretion - currently $3,500 | Before consummation of transfer or sale | Payable to Gold Star by any transferee (not the Franchisor) 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 Transfer Fee is due before the transfer or sale of the franchise is completed. The current transfer fee is $3,500, though Gold Star has the discretion to change this amount.
This fee is payable to Gold Star by the transferee, meaning the person or entity buying the franchise, and is non-refundable. This is a fairly standard practice in franchising, as the franchisor needs to approve the transfer and ensure the new franchisee meets their standards.
Prospective franchisees should be aware of this fee and factor it into their financial planning if they anticipate selling their Gold Star franchise in the future. It's also important to note that the fee amount is subject to change at Gold Star's discretion, so it's advisable to confirm the current fee with Gold Star before initiating a transfer.