Can Gold Star expand 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 Gold Star's 2025 Franchise Disclosure Document, Gold Star retains the authority to modify the responsibilities of the Franchisee Advisory Council. The Council's primary function is to advise Gold Star on advertising policies, with its members being existing franchisees elected by a majority vote. However, the Council operates solely in an advisory capacity, lacking any operational or decision-making power.
Gold Star maintains the power to form, dissolve, or change the Council, indicating significant control over its existence and function. This discretion extends to expanding, modifying, or even eliminating the Council or its responsibilities. Gold Star is not obligated to conduct any future advertising program according to written governing documents.
For a prospective franchisee, this means that while there is a Franchisee Advisory Council, its influence on advertising policies and other operational decisions is limited to an advisory role. Gold Star has the ultimate authority to make changes to the Council's responsibilities or even eliminate it entirely. Therefore, franchisees should not rely on the Council as a guaranteed mechanism for influencing Gold Star's decisions.