Are the brand building fees for Gold Star refundable?

According to Gold Star's 2025 Franchise Disclosure Document, the brand building fees are nonrefundable. Franchisees are required to pay a continuing brand building fee based on a percentage of their gross sales. The specific percentage is detailed on the cover page of the franchise agreement and can be adjusted by Gold Star, but it cannot exceed 7% of the franchisee's gross sales in any calendar year without the franchisee's written consent. Furthermore, increases to the Brand Building Fee cannot exceed 1% in any 12-month period.

The Brand Building Fee is used for the Brand Building Fund, which supports marketing and advertising activities for the Gold Star brand. These fees are typically paid weekly through pre-authorized electronic debit, ensuring consistent contributions to the fund. The funds are intended to cover costs related to advertising campaigns, marketing surveys, and other promotional activities at the local, regional, and national levels.

Given that the brand building fees are nonrefundable, prospective Gold Star franchisees should carefully consider this ongoing expense when evaluating the financial feasibility of the franchise. Understanding how these fees are calculated, when they are due, and how the Brand Building Fund is managed is crucial for budgeting and financial planning. Franchisees should also be aware that while the fund aims to enhance the brand's recognition, there is no guarantee that any individual franchisee will directly benefit from the advertising or promotion conducted through the fund.