Who has complete discretion regarding the Gold Star Brand Building Fund?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Gold Star (and its designee) has complete discretion regarding the Brand Building Fund. Gold Star is not obligated to spend any amount on
advertising in the area or territory where you are located. Neither Gold Star nor GSCAA is under any obligation to make expenditures of collected Brand Building Fees in any particular geographic area or for you or any other particular Franchisee, or to ensure that you or any other particular Franchisee benefits directly or on a pro rata basis from the Brand Building Fund.
GSCAA's in-house marketing team utilizes agencies and freelance contractors for the following: media planning and buying, creative development and production, digital development and production, social media marketing, consumer research, marketing analytics, and public and media relations. Third party technology platforms are used by the in-house marketing department to support the services and activities listed above*.*
You may develop advertising materials for your own use, at your own cost; provided that, you must obtain Gold Star's prior written approval of these advertising materials.
Gold Star has designated GSCAA to administer the Brand Building Fund and the Brand Building Fees which are currently used for the Brand Building Fund. Gold Star and GSCAA have sole discretion to determine, approve or disapprove the creative concepts, materials and media used in the Brand Building Fund and the placement, type, scope and allocation of Brand Building Fund advertising and activities.
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 (and its designee) has complete discretion regarding the Brand Building Fund. Gold Star is not obligated to spend any amount on advertising in the area or territory where a franchisee is located. Neither Gold Star nor GSCAA is under any obligation to make expenditures of collected Brand Building Fees in any particular geographic area or for any particular franchisee, or to ensure that any franchisee benefits directly or on a pro rata basis from the Brand Building Fund.
Gold Star has designated GSCAA to administer the Brand Building Fund and the Brand Building Fees which are currently used for the Brand Building Fund. Gold Star and GSCAA have sole discretion to determine, approve or disapprove the creative concepts, materials and media used in the Brand Building Fund and the placement, type, scope and allocation of Brand Building Fund advertising and activities.
This means that while franchisees are required to contribute to the Brand Building Fund, Gold Star has the ultimate authority on how the funds are spent. Franchisees should be aware that there is no guarantee that their specific location will benefit directly from these advertising efforts, or that the funds will be spent in their geographic area. Franchisees should consider the implications of this discretion when evaluating the franchise opportunity.