Can Gold Star eliminate the responsibilities of the Franchisee Advisory Council?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The Gold Star Chili Franchisee Advisory Council (the "Council") advises GSCAA on advertising policies. Currently, members of the Council are existing Franchisees (or their respective owners) and are elected by majority vote of Gold Star's Franchisees. Gold Star has the power to form, dissolve or change the Council. The Council serves in an advisory capacity only and does not have operational or decision-making power. Gold Star may, in its sole discretion, expand, modify or eliminate the Council or its responsibilities and is under no obligation to conduct any future advertising program with respect to written governing documents.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, Gold Star has the authority to modify or eliminate the Franchisee Advisory Council and its responsibilities. The Franchisee Advisory Council advises Gold Star on advertising policies, with members elected by a majority vote of Gold Star's franchisees.
However, the council serves only in an advisory capacity and does not have any operational or decision-making power. Gold Star retains the sole discretion to expand, modify, or eliminate the council or its responsibilities.
Gold Star is under no obligation to conduct any future advertising program with respect to written governing documents. This means that Gold Star franchisees should be aware that the franchisor can change or dissolve the advisory council, impacting franchisee input on advertising policies.