Can the Gold Star Brand Building Fund be used for direct mail advertising?

According to Gold Star's 2025 Franchise Disclosure Document, the Brand Building Fund can be used for direct mail advertising. Specifically, the Brand Building Fund is used to cover the costs of local, regional, and national advertising, promotional, and public relations activities. These activities include creating, preparing, producing, and conducting television, radio, magazine, and newspaper advertising campaigns, as well as direct mail and outdoor billboard advertising.

This means that a portion of the fees that Gold Star franchisees contribute to the Brand Building Fund may be allocated to direct mail campaigns. The franchisor, or its designee, has the discretion to determine the type, scope, and allocation of advertising. However, the franchisee does not have direct control over how the funds are spent, as the advertising is intended to maximize general public recognition of the Gold Star brand.

Franchisees should note that the Brand Building Fund is maintained separately from Gold Star's other monies and is not used for the company's expenses, except to repay advances made to the fund. The funds are intended to be spent during the taxable year in which they are received. An annual report on the use of the Brand Building Fund is available to franchisees upon written request, allowing them to see how the contributions were spent.