What is the estimated cost for grand opening advertising for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
expenses incurred in attending the training program.
Note 6: You must conduct a grand opening marketing and promotion program in compliance with Gold Star's requirements. Gold Star requires that you spend a minimum amount of $10,000 for grand opening advertising and promotion. You must spend the designated amount within 3 months after you open your Restaurant. When you spend the designated minimum amount on grand opening marketing and promotion, in compliance with Gold Star's requirements, it is Gold Star's current practice to spend an additional $5,000 of Brand Building fees to provide additional grand opening advertising and support. See Item 11, under the heading Brand Building Fund, for additional information.
Note 7: This estimates the additional funds which you will need on-hand for payroll and other working capital for the first 3 months of the operation of your Franchise. These figures are estimates and we cannot guarantee that you will not have additional expenses when starting the business.
Source: Item 7 — Estimated Initial Investment (FDD pages 18–21)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are required to spend a minimum of $10,000 on grand opening advertising and promotion. This expenditure must occur within the first three months after the restaurant opens. This is a mandatory part of the initial investment for opening a Gold Star franchise, as detailed in Item 7.
If the franchisee meets the minimum spending requirement of $10,000 and complies with Gold Star's grand opening marketing and promotion requirements, Gold Star indicates that it is their current practice to contribute an additional $5,000 from the Brand Building Fund. This additional support is intended to enhance the grand opening advertising efforts. Further details about the Brand Building Fund can be found in Item 11 of the FDD.
The initial investment table in Item 7 also lists the grand opening advertising expenditure as $10,000, payable to miscellaneous vendors and due within 3 months of opening. This confirms the mandatory minimum spending for franchisees, regardless of whether they choose a free-standing building or an inline space. Therefore, a prospective franchisee should budget at least $10,000 for the grand opening advertising campaign, with the potential for an additional $5,000 contribution from Gold Star if the franchisee meets the specified conditions.