For a Gold Star franchise, when is the grand opening advertising payment due?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount for Free Standing Building | Amount for Inline Space | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Grand Opening | $10,000 | $10,000 | As Arranged | Within 3 months | Miscellaneous |
| Advertising6 | of Opening | Vendors |
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.
Source: Item 7 — Estimated Initial Investment (FDD pages 18–21)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the grand opening advertising payment is due within 3 months of opening the restaurant. The required expenditure for grand opening advertising is a flat $10,000, payable to miscellaneous vendors.
Gold Star also states that if a franchisee spends the minimum $10,000 on grand opening marketing and promotion, and complies with Gold Star's requirements, Gold Star's current practice is to spend an additional $5,000 of Brand Building fees to provide additional grand opening advertising and support. More information on the Brand Building Fund can be found in Item 11 of the FDD.
This grand opening advertising expenditure is part of the estimated initial investment for a Gold Star franchise. Franchisees should budget accordingly to ensure they meet this obligation within the specified timeframe. It is important to note that the $10,000 is a minimum, and franchisees may choose to spend more on their grand opening advertising. Franchisees should also be aware of the conditions required to receive the additional $5,000 contribution from Gold Star.