If a Gold Star franchisee develops their own advertising materials, who pays for it?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
You may develop advertising materials for your own use, at your own cost; provided that, you must obtain Gold Star's prior written approval of these advertising materials.
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, franchisees are responsible for covering the costs of any advertising materials they develop for their own use. However, franchisees must first obtain written approval from Gold Star before using these materials. This policy ensures that all advertising aligns with the brand's standards, while placing the financial burden of localized advertising efforts on the individual franchisee.
This arrangement allows Gold Star to maintain control over its brand image and messaging, as all advertising materials, even those created by franchisees, are subject to their approval. This protects the brand's reputation and ensures consistency across all marketing efforts.
For prospective franchisees, this means that while they have the freedom to create their own advertising, they need to budget for these costs separately and factor in the time required to get approval from Gold Star. It's a balance between localized marketing efforts and maintaining brand uniformity.