Can Gold Star change or dissolve the Brand Building Fund?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Gold Star reserves the right to establish additional advertising funds in addition to the Brand Building Fund, and may change, merge or dissolve the Brand Building Fund and any other future advertising fund in Gold Star's sole discretion. If Gold Star does establish additional advertising funds, Gold Star may require you to pay all or a portion of Brand Building Fees to such fund in accordance with the provisions below.
If the Brand Building Fund is suspended or terminated, or whenever the required Brand Building Fee percentage is less than 7%, Gold Star has the right to require you to expend directly on the placement of local advertising and promotion whatever amount Gold Star may specify (but not to exceed, when aggregated with any Brand Building Fees required to be paid to the Brand Building Fund, 7% of Gross Sales in any calendar year).
Gold Star may terminate the Brand Building Fund or suspend its operation at any time, but the fund will not be terminated until all the monies in the fund have been expended pursuant to Section 9.3.7 of the Franchise Agreement.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star reserves the right to alter or discontinue the Brand Building Fund. Gold Star may modify, merge, or dissolve the Brand Building Fund and any other future advertising fund at its sole discretion.
Even if the Brand Building Fund is suspended or terminated, Gold Star retains the right to mandate that franchisees allocate up to 7% of their gross sales to local advertising and promotion. This direct spending, combined with any Brand Building Fees still required, cannot exceed 7% of gross sales annually.
Despite Gold Star's authority to terminate or suspend the Brand Building Fund, the document states that the fund will not be terminated until all monies have been expended according to the Franchise Agreement. This provides some assurance that existing funds will be used for their intended purpose even if the fund's operation ceases.