Under what conditions is the Gold Star Operating Deficiency Fee charged?
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 is charged if a franchisee fails to correct operational deficiencies within the specified cure period. This fee is a daily charge of $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 means that if a Gold Star franchisee's restaurant operations do not meet the franchisor's system standards, they will be given a period of time to fix the issues. If the franchisee fails to correct these deficiencies within that cure period, Gold Star will begin charging a $100 daily fee. This fee continues to accrue each day until the operational issues are resolved to Gold Star's satisfaction.
For a prospective franchisee, this highlights the importance of adhering to Gold Star's operational standards and addressing any identified deficiencies promptly to avoid incurring these daily fees. Franchisees should ensure they understand the specific operational standards and the process for addressing and resolving any deficiencies to avoid this additional cost.