Must the assignment of rebates from a Gold Star franchisee to the company be in writing?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
s used in connection with the Store. FRANCHISEE
specifically acknowledges and agrees that the word "advertising" as used in this Agreement includes, but is not limited to, signs (including signs on motor vehicles), URLs, e-mail addresses, Internet listings, banners, advertisements, or other services or links on or with the Internet, World Wide Web, Internet service providers, electronic mail services, communication providers, search engines, and similar services.
- 9.2 Grand Opening; Assignment of Rebates; Local Advertising. In addition to FRANCHISEE's obligations under Section 9.3, below:
- 9.2.1 FRANCHISEE shall, within three (3) months following the opening of the Store, spend such amount as the COMPANY may require (at least $10,000) in advertising and promoting the grand opening of the Store in accordance with the COMPANY's grand opening procedures (upon request of the COMPANY, FRANCHISEE shall provide to the COMPANY paid invoices, receipts or other proof of grand opening expenditures acceptable to the COMPANY); and
- 9.2.2 FRANCHISEE shall also assign pursuant to separate written assignments or consents to the COMPANY or its designee, in form and substance satisfactory to the COMPANY, any and all pro
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if a franchisee is required to assign product and/or advertising rebates or allowances granted by suppliers to Gold Star, the assignment must be in writing. Specifically, these assignments or consents must be separate and in a form and substance satisfactory to Gold Star.
This requirement ensures that there is a clear and documented agreement regarding the transfer of these rebates or allowances. This protects both the franchisee and Gold Star by providing a written record of the transaction, which can be useful for accounting, auditing, and legal purposes.
For a prospective Gold Star franchisee, this means that any agreement to assign rebates must be formalized in a written document that meets Gold Star's standards. It is important to carefully review the terms of the assignment to understand the scope of the rebates being assigned and any conditions attached to the assignment. Franchisees should seek legal counsel to ensure they fully understand the implications of assigning these rebates to Gold Star.