Who currently administers the Brand Building Fund for Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.3 Brand Building Fund. FRANCHISEE shall participate in the COMPANY's marketing fund (the "Brand Building Fund") as the COMPANY shall direct. Subject to written instructions from the COMPANY, FRANCHISEE shall pay all or a portion of the Brand Building Fee directly to the Brand Building Fund. The Brand Building Fund is currently administered by the Gold Star Chili Advertising Association, an Ohio nonprofit corporation, of which the COMPANY is the only member.
- 9.3.1 The COMPANY, or its designee, shall oversee all Brand Building Fund advertising, with sole discretion to determine, approve or disapprove the creative concepts, materials and media used in such advertising, and the placement, type, scope and allocation of the Brand Building Fund advertising. FRANCHISEE agrees and acknowledges that the Brand Building Fund advertising is intended to maximize general public recognition and acceptance of the Marks, Proprietary Products and System and that the COMPANY and its designee undertake no obligation, in
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Brand Building Fund is currently administered by the Gold Star Chili Advertising Association, an Ohio nonprofit corporation. Gold Star is the only member of this association.
The Brand Building Fund is used for local, regional, and national advertising, promotional, and public relations activities. This includes creating advertising campaigns across various media, conducting marketing surveys, employing advertising agencies and consultants, and providing marketing materials. The company, or its designee, has the authority to oversee all advertising related to the Brand Building Fund, including approving creative concepts, materials, and media.
Gold Star, or its designee, can withhold a portion of the Brand Building Fees to cover reasonable salaries, administrative costs, and overhead associated with these activities. The remaining balance is then contributed to the Brand Building Fund. All contributions are kept in a separate account and are not used for the company's expenses, except to repay any advances made to the fund. The fund's earnings cannot benefit Gold Star or its designee, ensuring that the funds are used exclusively for marketing and advertising purposes.
Franchisees are required to participate in the Brand Building Fund as directed by Gold Star and may be required to pay a Brand Building Fee. This fee is subject to change at Gold Star's discretion, but it cannot exceed 7% of the franchisee's gross sales in any calendar year without the franchisee's written consent. The Brand Building Fee will not be increased by more than 1% in any 12-month period.