Must all advertising by a Gold Star franchisee be completely accurate and truthful?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
otherwise associated with the Business, and including without limitation any revenues earned offpremises, such as delivery, catering events, food trucks, etc., without reserve or deduction for uncollected credit accounts. "Gross Sales" shall not include sales taxes that are separately stated and collected by FRANCHISEE or refunds, discounts or allowances that are made to customers, in good faith and consistent with the COMPANY's policies prescribed from time to time.
9. ADVERTISING.
9.1 Franchisee's Advertising; Approval by Company. All advertising by FRANCHISEE in any medium shall be conducted in a dignified manner, shall conform to such standards and requirements as the COMPANY may specify from time to time in the Manual or otherwise in writing, shall conform to all applicable laws and regulations relating to consumer advertising, shall be completely accurate and truthful, and shall give notice that the Store is independently owned and operated. FRANCHISEE shall participate in all promotions designated by the COMPANY for the market in which the Store is located and will be responsible for putting up in-store materials and the cost of Products being promoted. FRANCHISEE shall not enter into any agreement with any advertising agency without the prior written approval of the COMPANY, which may be withheld in the COMPANY's sole discretion. FRANCHISEE shall submit to the COMPANY (in accordance with Section 20 below), for the COMPANY's prior approval (except with respect to prices to be charged), samples of all advertising and promotional plans and materials, including signs, and all other materials displaying the Marks that FRANCHISEE desires to use and that have not been prepared or previously approved by the COMPANY. Unless FRANCHISEE receives a written objection from the COMPANY within fifteen (15) days after the effective date of FRANCHISEE's request, the COMPANY shall be deemed to have given the required approval. FRANCHISEE shall display the Marks in the manner prescribed by the COMPANY on all signs and all other advertising and promotional materials used in connection with the Store.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, all advertising by a franchisee must be completely accurate and truthful. This requirement extends to all advertising mediums and must conform to all applicable laws and regulations relating to consumer advertising. The advertising must also be conducted in a dignified manner and adhere to the standards and requirements specified by Gold Star in its manual or in writing.
This means that a Gold Star franchisee cannot make any false or misleading claims in their advertising. They must also ensure that their advertising is not offensive or inappropriate. The franchisee is also responsible for ensuring that their advertising complies with all applicable laws and regulations, such as those related to truth in advertising.
Furthermore, the franchisee must give notice that the store is independently owned and operated. Before using any advertising and promotional plans and materials, including signs, that have not been prepared or previously approved by Gold Star, the franchisee must submit samples to Gold Star for prior approval, with the exception of prices to be charged. Gold Star has 15 days to provide a written objection, or approval is considered to be granted. The definition of advertising includes signs, URLs, email addresses, internet listings, and more.