Can a Gold Star franchisee enter into an agreement with any advertising agency without the company's approval?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
9.1 Franchisee's Advertising; Approval by Company. All advertising by FRANCHISEE in any medium shall be conducted in a dignified manner, shall conform to such standards and requirements as the COMPANY may specify from time to time in the Manual or otherwise in writing, shall conform to all applicable laws and regulations relating to consumer advertising, shall be completely accurate and truthful, and shall give notice that the Store is independently owned and operated. FRANCHISEE shall participate in all promotions designated by the COMPANY for the market in which the Store is located and will be responsible for putting up in-store materials and the cost of Products being promoted. FRANCHISEE shall not enter into any agreement with any advertising agency without the prior written approval of the COMPANY, which may be withheld in the COMPANY's sole discretion. FRANCHISEE shall submit to the COMPANY (in accordance with Section 20 below), for the COMPANY's prior approval (except with respect to prices to be charged), samples of all advertising and promotional plans and materials, including signs, and all other materials displaying the Marks that FRANCHISEE desires to use and that have not been prepared or previously approved by the COMPANY. Unless FRANCHISEE receives a written objection from the COMPANY within fifteen (15) days after the effective date of FRANCHISEE's request, the COMPANY shall be deemed to have given the required approval. FRANCHISEE shall display the Marks in the manner prescribed by the COMPANY on all signs and all other advertising and promotional materials used in connection with the Store. FRANCHISEE
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee cannot independently hire an advertising agency. The FDD states that a Gold Star franchisee must obtain prior written approval from Gold Star before entering into any agreement with an advertising agency. This approval can be withheld at Gold Star's discretion.
This requirement ensures that all advertising and promotional materials align with Gold Star's brand standards and marketing strategies. The franchisee is also required to submit samples of all advertising and promotional plans to Gold Star for approval, except for pricing. Gold Star has 15 days to provide a written objection; otherwise, the approval is considered granted.
This policy allows Gold Star to maintain control over its brand image and marketing efforts, ensuring consistency across all franchise locations. It also helps to protect the brand's reputation and prevent franchisees from using advertising that could be misleading or harmful to the brand. Franchisees must adhere to these guidelines to remain in compliance with the franchise agreement.