Does the Gold Star company have to provide a reason for withholding advertising approval?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
All advertising by FRANCHISEE in any medium shall be conducted in a dignified manner, shall conform to such standards and requirements as the COMPANY may specify from time to time in the Manual or otherwise in writing, shall conform to all applicable laws and regulations relating to consumer advertising, shall be completely accurate and truthful, and shall give notice that the Store is independently owned and operated. FRANCHISEE shall participate in all promotions designated by the COMPANY for the market in which the Store is located and will be responsible for putting up in-store materials and the cost of Products being promoted. FRANCHISEE shall not enter into any agreement with any advertising agency without the prior written approval of the COMPANY, which may be withheld in the COMPANY's sole discretion. FRANCHISEE shall submit to the COMPANY (in accordance with Section 20 below), for the COMPANY's prior approval (except with respect to prices to be charged), samples of all advertising and promotional plans and materials, including signs, and all other materials displaying the Marks that FRANCHISEE desires to use and that have not been prepared or previously approved by the COMPANY. Unless FRANCHISEE receives a written objection from the COMPANY within fifteen (15) days after the effective date of FRANCHISEE's request, the COMPANY shall be deemed to have given the required approval. FRANCHISEE
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star has the discretion to approve or deny franchisee advertising and promotional plans. Franchisees must submit advertising and promotional materials to Gold Star for prior approval, except for pricing. Gold Star is considered to have given approval if the franchisee does not receive a written objection within 15 days of the request.
Gold Star franchisees are required to conduct all advertising in a dignified manner, adhering to the standards and requirements specified in the manual or in writing. The advertising must comply with all applicable laws and regulations related to consumer advertising, be completely accurate and truthful, and indicate that the store is independently owned and operated. Franchisees must participate in promotions designated by Gold Star for their market, including in-store materials and the cost of products being promoted.
Franchisees cannot enter into agreements with advertising agencies without Gold Star's prior written approval, which may be withheld at Gold Star's sole discretion. The term "advertising" includes signs, URLs, email addresses, internet listings, banners, and other online services. Gold Star retains the right of final approval of all advertising.