Are all Gold Star franchisees required to participate in the Brand Building Fund?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
All Franchisees must participate in the Brand Building Fund and in any future advertising programs that Gold Star requires. You must pay Brand Building Fees equal to up to 7% of weekly Gross Sales. The Brand Building Fee will not be increased by more than 1% in a 12-month period. Franchisees operating Special Purpose Outlets typically pay Brand Building Fees of 1% less than Traditional Outlets. Your Brand Building Fees are due weekly by Tuesday for the week ended the immediately prior Sunday (based on Gross Sales for the week just ended) and, unless otherwise required by Gold Star, must be paid via a preauthorized debit arrangement that allows Gold Star to cause your bank account to be debited for fees and charges under the Franchise Agreement. If the Brand Building Fund is suspended or terminated, or whenever the required Brand Building Fee percentage is less than 7%, Gold Star has the right to require you to expend directly on the placement of local advertising and promotion whatever amount Gold Star may specify (but not to exceed, when aggregated with any Brand Building Fees required to be paid to the Brand Building Fund, 7% of Gross Sales in any calendar year). Certain supplier payments also are contributed to the Brand Building Fund (see Note 3 to Item 6 of this disclosure document and the "Revenue from Franchisee Purchases" Section in Item 8 of this disclosure document).
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, all franchisees must participate in the Brand Building Fund and any future advertising programs that Gold Star requires. Franchisees are obligated to pay Brand Building Fees, which can be up to 7% of weekly Gross Sales. The Brand Building Fee will not increase by more than 1% within a 12-month period.
Franchisees operating Special Purpose Outlets typically pay Brand Building Fees that are 1% less than what Traditional Outlets pay. These fees are due weekly, by Tuesday, for the week that ended the prior Sunday, and are based on Gross Sales for that week. Unless Gold Star requires otherwise, these fees must be paid through a preauthorized debit arrangement.
If the Brand Building Fund is suspended, terminated, or if the required Brand Building Fee percentage is less than 7%, Gold Star has the right to require franchisees to spend directly on local advertising and promotion. This amount cannot exceed, when combined with any Brand Building Fees paid to the fund, 7% of Gross Sales in any calendar year. Certain supplier payments are also contributed to the Brand Building Fund.