What is the minimum amount a Gold Star franchisee must spend on grand opening advertising?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
s used in connection with the Store. FRANCHISEE
specifically acknowledges and agrees that the word "advertising" as used in this Agreement includes, but is not limited to, signs (including signs on motor vehicles), URLs, e-mail addresses, Internet listings, banners, advertisements, or other services or links on or with the Internet, World Wide Web, Internet service providers, electronic mail services, communication providers, search engines, and similar services.
- 9.2 Grand Opening; Assignment of Rebates; Local Advertising. In addition to FRANCHISEE's obligations under Section 9.3, below:
- 9.2.1 FRANCHISEE shall, within three (3) months following the opening of the Store, spend such amount as the COMPANY may require (at least $10,000) in advertising and promoting the grand opening of the Store in accordance with the COMPANY's grand opening procedures (upon request of the COMPANY, FRANCHISEE shall provide to the COMPANY paid invoices, receipts or other proof of grand opening expenditures acceptable to the COMPANY); and
- 9.2.2 FRANCHISEE shall also assign pursuant to separate written assignments or consents to the COMPANY or its designee, in form and substance satisfactory to the COMPANY, any and all product and/or advertising rebates or allowances granted by suppliers to FRANCHISEE in conjunction with the franchise and required to be assigned 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, a new franchisee is required to spend a minimum amount on advertising and promoting the grand opening of their store. Specifically, within three months of opening, the franchisee must spend at least $10,000 on grand opening advertising. This expenditure must adhere to Gold Star's grand opening procedures.
Gold Star may request paid invoices, receipts, or other proof of these grand opening expenditures to ensure compliance. In addition to this initial grand opening spend, franchisees are also obligated to spend at least one percent of their gross sales on local media and advertising on a monthly basis, referred to as the "Local Marketing Expenditure." This is separate from the grand opening advertising requirement.
Furthermore, Gold Star retains the option to contribute additional funds from the Brand Building Fund towards a franchisee's grand opening advertising and support, provided the franchisee meets the requirements outlined in Section 9.2.1 to Gold Star's satisfaction. This potential contribution could help offset some of the initial advertising costs for the franchisee. It's important for prospective franchisees to understand these advertising obligations and potential support options as they factor into their initial investment and ongoing marketing efforts.