Is the Gold Star franchisee required to advertise the Business only under the Marks?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
ms of this Agreement, FRANCHISEE shall acquire no right, title or interest of any kind or nature whatsoever in or to the Marks and FRANCHISEE may not represent that it has
- any ownership of the Marks in advertising or otherwise. FRANCHISEE shall acquire no right, title or interest in or to the goodwill associated with the Marks.
- 6.2 Use of Marks. FRANCHISEE shall operate, advertise and promote the Business only under the Marks, and display and use the Marks, advertisements and other promotional materials provided, from time to time by the COMPANY to FRANCHISEE only in such form and manner as is specifically directed or approved in writing by the COMPANY. FRANCHISEE shall, upon request by the COMPANY, use any legends, markings and notices of registration of the Marks, or of the COMPANY-FRANCHISEE relationship as specified by the COMPANY.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees must operate, advertise, and promote their business solely under the Marks, utilizing advertisements and promotional materials provided or approved in writing by Gold Star. This means a franchisee cannot use any other marks, signs, or symbols without prior written consent from Gold Star.
This requirement ensures brand consistency and uniformity across all Gold Star locations, protecting the brand's image and goodwill. Franchisees must also use any legends, markings, and notices of registration of the Marks as specified by Gold Star. Any advertising, displays, or other material using the Marks prepared by the franchisee requires Gold Star's written approval before use.
This policy is typical in franchising, as franchisors need to maintain tight control over their brand to ensure a consistent customer experience and protect their trademarks. A Gold Star franchisee's failure to adhere to these guidelines could result in a breach of the franchise agreement and potential penalties.
In practical terms, a prospective franchisee should understand that they will have limited creative control over marketing and advertising materials. They must rely on Gold Star's approved materials and seek written approval for any deviations. This is a crucial aspect to consider for anyone evaluating a Gold Star franchise opportunity.