Does the Gold Star Chili Franchisee Advisory Council have operational power?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The Gold Star Chili Franchisee Advisory Council (the "Council") advises GSCAA on advertising policies. Currently, members of the Council are existing Franchisees (or their respective owners) and are elected by majority vote of Gold Star's Franchisees. Gold Star has the power to form, dissolve or change the Council. The Council serves in an advisory capacity only and does not have operational or decision-making power. Gold Star may, in its sole discretion, expand, modify or eliminate the Council or its responsibilities and is under no obligation to conduct any future advertising program with respect to written governing documents.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to the 2025 Gold Star FDD, the Franchisee Advisory Council serves only in an advisory capacity. The council's purpose is to advise Gold Star on advertising policies. The members of the Council are existing franchisees who are elected by a majority vote.
Gold Star maintains the power to form, dissolve, or change the Council, and it is not obligated to conduct any future advertising program according to written governing documents. This means that while franchisees have a voice through the Council, Gold Star ultimately controls advertising policies and the Council's existence.
This arrangement is fairly common in franchising, where franchisors often seek franchisee input but retain final decision-making authority to ensure brand consistency and strategic alignment. Prospective Gold Star franchisees should understand that while they can participate in the Council and offer advice, they do not have the power to make operational or advertising decisions.