Is the Gold Star Brand Building Fund currently administered by the Gold Star Chili Advertising Association?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.3 Brand Building Fund. FRANCHISEE shall participate in the COMPANY's marketing fund (the "Brand Building Fund") as the COMPANY shall direct. Subject to written instructions from the COMPANY, FRANCHISEE shall pay all or a portion of the Brand Building Fee directly to the Brand Building Fund. The Brand Building Fund is currently administered by the Gold Star Chili Advertising Association, an Ohio nonprofit corporation, of which the COMPANY is the only member.
- 9.3.1 The COMPANY, or its designee, shall oversee all Brand Building Fund advertising, with sole discretion to determine, approve or disapprove the creative concepts, materials and media used in such advertising, and the placement, type, scope and allocation of the Brand Building Fund advertising. FRANCHISEE agrees and acknowledges that the Brand Building Fund advertising is intended to maximize general public recognition and acceptance of the Marks, Proprietary Products and System and that the COMPANY and its designee undertake no obligation, in
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 Fund is currently administered by the Gold Star Chili Advertising Association. Specifically, the FDD states that the Brand Building Fund is administered by the Gold Star Chili Advertising Association, which is an Ohio nonprofit corporation. Gold Star is the only member of this advertising association.
Gold Star, or its designee, has the authority to oversee all advertising related to the Brand Building Fund. This includes the discretion to determine, approve, or disapprove the creative concepts, materials, and media used in advertising, as well as the placement, type, scope, and allocation of advertising funds. The FDD emphasizes that the advertising is intended to maximize public recognition and acceptance of Gold Star's trademarks, proprietary products, and overall system.
This arrangement means that while franchisees contribute to the Brand Building Fund, Gold Star retains significant control over how those funds are spent and the advertising strategies employed. Franchisees should be aware that they may be required to pay a Brand Building Fee directly to the Brand Building Fund, subject to written instructions from Gold Star. Understanding the objectives and operations of the Gold Star Chili Advertising Association is crucial for franchisees to assess the value and impact of their contributions to the fund.