Does the definition of 'advertising' for Gold Star include advertisements?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
----|-----------| | 2026 | | 1,437,287 | | 2027 | | 1,449,009 | | 2028 | | 1,357,457 | | 2029 | | 1,072,712 | | Thereafter | | 2,653,133 | | | | | | | $. | 9,635,500 |
Property and Equipment related to operating lease and related accumulated depreciation was as follows:
| December 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||||
| Buildings | $ | 16,002,653 | $ | 13,365,027 | $ | 13,525,406 | |
| Less Accumulated Depreciation | 7,937,500 | 7,171,838 | 7,408,212 | ||||
| Net Building Under Lease | $_ | 8,065,153 | $ | 6,193,189 | $ | 6,117,194 |
NOTE 16 - PROFIT SHARING EXPENSE
Profit sharing / 401(k) expense was $64,584, $73,246, and $65,823 for the years ended December 31, 2024, 2023, and 2022,
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the definition of 'advertising' itself is not explicitly detailed. However, the FDD does mention various aspects of advertising and marketing relevant to Gold Star franchisees.
The document refers to the "Gold Star Chili Advertising Association" which provides advertising and marketing services for franchisees. Gold Star acts as a conduit, collecting advertising contributions from franchisees and disbursing the funds to this advertising entity. The company also makes contributions for marketing research and product development.
The FDD outlines that franchisees are required to spend a minimum of $10,000 on advertising and promoting the grand opening of their store. Franchisees must also spend at least one percent of gross sales on local media and advertising. Gold Star oversees all advertising from the Brand Building Fund, having the discretion to determine and approve creative concepts, materials, and media used. This advertising aims to maximize public recognition of the Gold Star brand.