Must contributions to the Gold Star Brand Building Fund be kept separate from other monies of the company?

According to Gold Star's 2025 Franchise Disclosure Document, contributions to the Brand Building Fund must be maintained separately from the company's other funds. Specifically, all franchisee contributions to the Brand Building Fund must be kept in a separate account from the other monies of Gold Star or its designee. These funds can only be used for the costs of maintaining, administering, and directing local, regional, and national advertising, promotional, and public relations activities.

This separation of funds ensures that the money franchisees pay into the Brand Building Fund is used exclusively for marketing and advertising purposes, and not for Gold Star's general operating expenses. The FDD specifies that the Brand Building Fund and any earnings from it should not benefit Gold Star or its designee, except to repay any advances made by Gold Star to the Brand Building Fund.

Gold Star or its designee can withhold a portion of the Brand Building Fees to cover reasonable salaries, administrative costs, and overhead associated with the activities detailed in Section 9.3.5 of the FDD. The remaining balance after this withholding constitutes the franchisee's contribution to the Brand Building Fund, which is then used exclusively for the advertising and promotional purposes outlined in the FDD.

This arrangement provides transparency and accountability regarding how the Brand Building Fees are managed and spent, assuring franchisees that their contributions are being used as intended to promote the Gold Star brand. Franchisees have the right to request a report on the use and application of the Brand Building Fund annually.