Can the advertising expenditures be higher in the renewed Gold Star franchise agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The terms of such new franchise agreement may differ materially from those in this Agreement, including but not limited to the terms of the franchise agreement, higher continuing franchise fees, higher advertising expenditures, higher fees or charges of other types, a different term,
- different Protected Territory, different renewal rights and other different terms of any kind whatsoever); and
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the terms of the new franchise agreement may differ materially from the original agreement, including the possibility of higher advertising expenditures. This means that when a franchisee renews their agreement, Gold Star has the right to change the advertising fees.
Specifically, Gold Star franchisees need to be aware that upon renewal, the advertising expenditures could be higher than what they were under the original agreement. This is a significant point to consider when evaluating the long-term financial viability of the franchise. Franchisees should factor in potential increases in these costs when projecting future profitability.
It is important for prospective franchisees to carefully review the then-current form of the franchise agreement presented at the time of renewal to fully understand any changes in advertising expenditure requirements. They should also seek professional financial advice to assess the potential impact of these changes on their business. Understanding these potential changes is crucial for making an informed decision about renewing the Gold Star franchise agreement.