Are Brand Building Fees imposed directly by the Gold Star Brand Building Fund?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Special Purpose Outlet is 4% of Gross Sales.
Note 3: Gold Star Currently has designated Gold Star Chili Advertising Association, an Ohio nonprofit corporation ("GSCAA"), to oversee the franchisee Brand Building fund (the "Brand Building Fund"). Gold Star is the sole member of GSCAA, and a majority of GSCAA's current board of trustees are officers, directors, employees or shareholders of Gold Star. Brand Building Fees are imposed by Gold Star under the Franchise Agreement. The Brand Building Fund does not itself impose fees. All Brand Building Fees are nonrefundable; however, when a Franchisee opening a new Restaurant reviews and approves the New Restaurant Opening Marketing Plan, it is the current practice for those expenses (currently, at least $15,000) to be funded by GSCAA and the Franchisee to reimburse their portion in the amount of $10,000, the remainder funded by GSCAA. In addition, it is currently the practice for Gold Star to spend $10,000 of Brand Building Fees on advertising and support to a Franchisee who "re-opens" a Restaurant that it has spent more than $50,000 remodeling and invoice the Franchisee for their contribution in the amount of $5,000 for grand re-opening marketing and promotion. Neither Gold Star nor GSCAA is obligated to continue these practices. At the option of Gold Star, you must enter into and maintain a debit authorization agreement authorizing Gold Star to cause your bank account to be debited for charges, including Continuing Franchise Fees, Brand Building Fees and late payment charges.
Note 4: The amount of the Brand Building Fee is determined in Gold Star's sole discretion. However, the Brand Building Fee will not be increased by more than 1% in any 12-month period. In many cases, the Brand Building Fee assessed for the operation of a Special Purpose Outlet, as d
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Brand Building Fees are not directly imposed by the Brand Building Fund. Instead, Gold Star imposes these fees under the Franchise Agreement. The Brand Building Fund, managed by the Gold Star Chili Advertising Association (GSCAA), does not itself impose these fees. Gold Star is the sole member of GSCAA, and a majority of GSCAA's current board of trustees are officers, directors, employees or shareholders of Gold Star.
All Brand Building Fees are nonrefundable. However, when a franchisee opens a new restaurant and approves the New Restaurant Opening Marketing Plan, the GSCAA may fund a portion of these expenses. Currently, GSCAA funds at least $15,000 of these expenses, with the franchisee reimbursing $10,000. Gold Star may also spend $10,000 of Brand Building Fees on advertising and support for a franchisee who re-opens a remodeled restaurant (costing more than $50,000 to remodel) and invoice the franchisee $5,000 for grand re-opening marketing and promotion.
Gold Star retains the option to debit a franchisee's bank account for charges, including Continuing Franchise Fees and Brand Building Fees. The amount of the Brand Building Fee is determined at Gold Star's discretion, but it will not increase by more than 1% in any 12-month period. For Special Purpose Outlets, the Brand Building Fee is often 4% of Gross Sales. Franchisees should note that these practices are subject to change at Gold Star's discretion.