What is the development fee for the first Goldsainte franchise location if opening more than five?

According to Goldsainte's 2024 Franchise Disclosure Document, the development fee structure changes if a franchisee commits to opening more than five locations. The standard development fee covers the right to open and operate up to five Goldsainte locations, either Goldsainte XL or Goldsainte Premium, provided the franchisee meets their development obligations. However, for franchisees planning a larger expansion, the development fee is calculated differently.

Specifically, if a franchisee intends to open more than five Goldsainte franchises, the development fee for the first franchise location is $45,000. For each additional franchise location beyond the first, the development fee decreases to $40,000 per location. This tiered fee structure incentivizes larger development commitments while adjusting the initial investment required for each additional unit.

This means that a franchisee planning to open six Goldsainte locations would pay a development fee of $45,000 for the first location and an additional $40,000 for each of the five subsequent locations, totaling $245,000 in development fees. This is different from the initial development fee of $205,000, which grants the franchisee the right to open five Goldsainte locations. Prospective franchisees should carefully consider their expansion plans and financial capabilities when deciding on the number of locations to commit to under the area development agreement, as this decision directly impacts the development fees payable to Goldsainte.