To whom is the Brand Building Fee for Gold Star payable?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise required in the Manual or pursuant to Section 8.3 below, the Brand Building Fee shall be payable by FRANCHISEE to the COMPANY (or the COMPANY's designee) for the COMPANY's Brand Building Fund (as defined in Section 9.3)) on or before Tuesday of each week based on the Gross Sales for the preceding week ending on Sunday pursuant to the preauthorized debit arrangement described in Section 8.2, below.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Brand Building Fee is payable by the franchisee to Gold Star (or Gold Star's designee) for the Brand Building Fund. Unless otherwise required in the Manual or pursuant to Section 8.3, this fee is due on or before Tuesday of each week, based on the Gross Sales for the preceding week ending on Sunday. Payment is facilitated through a preauthorized debit arrangement.
The Brand Building Fee is a continuing fee based on Gross Sales, with the specific percentage outlined on the cover page of the franchise agreement. Gold Star retains the right to adjust this fee at its discretion, but it cannot exceed seven percent of the franchisee's Gross Sales in any calendar year without the franchisee's written consent. Furthermore, increases are capped at 1% within any 12-month period.
All Brand Building Fees are nonrefundable. The Brand Building Fund itself is administered by the Gold Star Chili Advertising Association, an Ohio nonprofit corporation, of which Gold Star is the sole member. This fund is used for marketing purposes as directed by Gold Star, aiming to maximize public recognition and acceptance of the Gold Star brand.