To whom are utility deposits paid when opening a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
YOUR ESTIMATED INITIAL INVESTMENT 1
| Type of Expenditure | Amount for Free Standing Building | Amount for Inline Space | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee2 | $10,000 to $50,000 | $10,000 to $50,000 | Cashier’s Check | At |
Source: Item 7 — Estimated Initial Investment (FDD pages 18–21)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, utility deposits, which range from $1,000 to $3,000 for both free-standing buildings and inline spaces, are paid to suppliers and utilities. These deposits are typically arranged before the restaurant opens.
This means that as a prospective Gold Star franchisee, you should budget between $1,000 and $3,000 for utility deposits. The actual amount will depend on the specific location and the requirements of the utility companies serving that area. It is important to note that these deposits are in addition to other initial investment costs, such as the franchise fee, real property costs, and equipment.
Utility deposits are a common expense when starting a new business, including franchises. These deposits are typically required to secure utility services such as electricity, gas, and water. The deposit amount is usually based on the estimated usage and may be refunded upon termination of the service, provided all bills are paid. Franchisees should confirm with local utility providers the specific deposit requirements for their Gold Star location.
Prospective franchisees should factor in these utility deposit costs when planning their initial investment. It is advisable to contact local utility companies early in the process to determine the exact deposit amounts required for the specific location. This will help in accurately estimating the total initial investment and avoiding any unexpected expenses before opening the Gold Star franchise.