Must a Gold Star franchisee participate in promotions designated by the company for their market?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are required to participate in all promotions designated by Gold Star for the market in which their store is located. This includes being responsible for setting up in-store promotional materials and covering the cost of the products being promoted.
This requirement ensures brand consistency and coordinated marketing efforts across all Gold Star locations. By participating in designated promotions, franchisees contribute to the overall marketing strategy and brand image of Gold Star. This coordinated approach aims to maximize the impact of promotional campaigns and drive customer traffic to all locations.
However, franchisees are not allowed to enter into agreements with any advertising agency without prior written approval from Gold Star. Furthermore, franchisees must submit all advertising and promotional plans and materials to Gold Star for approval, except for pricing. This allows Gold Star to maintain control over brand messaging and ensure compliance with company standards and applicable laws.
This mandatory participation in promotions, coupled with the approval process for advertising materials, highlights the importance of adhering to Gold Star's established marketing strategies. Franchisees should be prepared to allocate resources for these promotions and work closely with Gold Star to ensure compliance with all advertising guidelines.