Can the Gold Star Brand Building Fund be used for outdoor billboard advertising?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.3.3 The Brand Building Fund, all contributions thereto, and any earnings thereon shall be used exclusively to meet any and all costs of maintaining, administering, directing and preparing local, regional and/or national advertising, promotional and public relations activities, including, among other things, the cost of creating, preparing, producing and conducting television, radio, magazine and newspaper advertising campaigns; direct mail and outdoor billboard advertising; marketing surveys and other public relations activities; employing advertising agencies and marketing, advertising and other consultants to assist therein; and providing promotional brochures and other marketing materials.
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 can be used for outdoor billboard 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 and conducting advertising campaigns through various media channels.
The FDD specifies that the Brand Building Fund can be used for television, radio, magazine, and newspaper advertising campaigns, as well as direct mail and outdoor billboard advertising. It also covers marketing surveys, public relations activities, and the employment of advertising agencies and consultants. Additionally, the fund can be used to provide promotional brochures and other marketing materials.
This means that Gold Star franchisees benefit from a comprehensive marketing strategy funded through the Brand Building Fund, which includes diverse advertising channels such as outdoor billboards. This allows for broad exposure of the Gold Star brand and its offerings, potentially increasing customer traffic and sales for individual franchise locations. The franchisor has 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.