Who currently supervises the Brand Building Fund for Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Building Fees collected from you and other Franchisees are currently used in the Brand Building Fund supervised by Gold Star or its designee, currently GSCAA (see Note 3 to Item 6 of this disclosure document).
The Brand Building Fund may disseminate advertising through various media, including print, radio, television, billboards, newspaper and digitally via e-mail and internet advertising. Media coverage may be local, regional or national in scope, all in the discretion of Gold Star or its designee. During the fiscal year ended December 31, 2024, media coverage was typically local in scope and limited to the Greater Cincinnati DMA. In Gold Star's discretion, smaller scale marketing programs, based on the amount of Brand Building Fees generated may be implemented in other selected geographical areas. Currently, such smaller scale marketing programs have been implemented in Lexington, and Somerset Kentucky. 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, the Brand Building Fund, which collects fees from franchisees, is currently supervised by Gold Star or its designee, which is currently GSCAA. Gold Star has complete discretion regarding the Brand Building Fund and 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.
GSCAA's in-house marketing team uses agencies and freelance contractors for various marketing activities, including media planning and buying, creative development and production, digital development and production, social media marketing, consumer research, marketing analytics, and public and media relations. 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.
For a prospective Gold Star franchisee, this means that while they are required to contribute to the Brand Building Fund, there is no guarantee that these funds will be used in their specific area or directly benefit their franchise. Franchisees do have the option to develop their own advertising materials at their own cost, but these materials must receive prior written approval from Gold Star. Franchisees should be aware that the Brand Building Fund is not audited; however, an unaudited report of the use and application of the Brand Building Fund will be prepared annually by Gold Star or its designee and a copy of the report will be provided to any Franchisee upon written request.