What form must the assignment of rebates or allowances to the Gold Star company be in?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.2.2 FRANCHISEE shall also assign pursuant to separate written assignments or consents to the COMPANY or its designee, in form and substance satisfactory to the COMPANY, any and all product and/or advertising rebates or allowances granted by suppliers to FRANCHISEE in conjunction with the franchise and required to be assigned by the COMPANY; and
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, if a franchisee receives any product or advertising rebates or allowances from suppliers in connection with the franchise, they must assign these to Gold Star. These assignments must be made through separate written assignments or consents. The specific form and substance of these written assignments must be satisfactory to Gold Star.
This requirement allows Gold Star to consolidate and manage rebates and allowances received by individual franchisees, potentially leveraging the collective buying power of the franchise system. It also ensures that Gold Star has control over how these funds are used, likely directing them towards marketing or other initiatives that benefit the entire brand.
For a prospective franchisee, this means they cannot directly benefit from any rebates or allowances negotiated with suppliers. Instead, these benefits are assigned to Gold Star, which then decides how to allocate the funds. Franchisees should ensure they understand how Gold Star utilizes these assigned rebates and allowances, and how they contribute to the overall marketing and brand-building efforts of the franchise system.