Under what conditions does the Operating Deficiency Fee apply to a Gold Star franchisee?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Operating Deficiency Fee12 | Daily fee of $100 for each day you fail to cure operating deficiencies after expiration of the cure period | On demand | Payable to Gold Star or its designated operator Non-refundable |
Note 12: If you fail to conform the Restaurant operations to our system standards within the applicable cure period, Gold Star has the right to charge you a daily fee of $100 for each day that you fail to correct the operational deficiencies after the expiration of the cure period.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Operating Deficiency Fee applies when a franchisee fails to correct operational deficiencies within the specified cure period. This means that if a Gold Star restaurant does not meet the brand's system standards, the franchisee will be given a period of time to fix the issues.
If the franchisee does not correct the deficiencies within this cure period, Gold Star has the right to charge a daily fee. This fee is $100 for each day the deficiencies remain uncorrected after the cure period expires. The fee is payable to Gold Star or its designated operator and is non-refundable.
This fee serves as an incentive for franchisees to maintain Gold Star's operational standards and address any issues promptly. It also provides Gold Star with a means to recoup costs associated with monitoring and enforcing compliance with its system standards. Prospective franchisees should understand the importance of adhering to operational standards and the financial implications of failing to do so.