Can a Gold Star franchisee use advertisements and promotional materials not approved by the company?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The COMPANY's written approval shall be required before any advertising, displays or other material using the Marks prepared by FRANCHISEE is used.
- 6.3 Conflicting Marks.
FRANCHISEE shall not use any marks, signs, symbols, other indicia or identifying characteristics in connection with the Business other than the Marks, without the prior written consent of the COMPANY, which shall be in the COMPANY's sole discretion.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees must obtain prior written approval from Gold Star for any advertising, displays, or other materials using the company's marks that the franchisee prepares. This includes signs (even on motor vehicles), URLs, email addresses, internet listings, banners, advertisements, and any services or links on the internet. Franchisees must submit samples of all advertising and promotional plans to Gold Star for approval, except for pricing. If Gold Star does not provide a written objection within 15 days of the request, approval is considered granted.
This requirement ensures that all advertising and promotional materials meet Gold Star's standards and comply with applicable laws. The company retains discretion over the creative concepts, materials, and media used in advertising, as well as the placement, type, scope, and allocation of advertising efforts. This control is intended to maximize public recognition and acceptance of the Gold Star brand, proprietary products, and overall system.
Gold Star provides franchisees with a list of approved sources for advertising and marketing materials. Franchisees are also required to participate in promotions designated by Gold Star for their market and are responsible for in-store materials and the cost of products being promoted. Furthermore, franchisees must participate in Gold Star's Brand Building Fund, contributing to marketing efforts overseen by the Gold Star Chili Advertising Association.
Failure to adhere to these advertising guidelines could lead to a breach of the franchise agreement. Therefore, it is crucial for prospective franchisees to understand and comply with Gold Star's advertising and promotional requirements to maintain a consistent brand image and avoid potential conflicts with the franchisor.