Can Gold Star modify the responsibilities of the Franchisee Advisory Council?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The Gold Star Chili Franchisee Advisory Council (the "Council") advises GSCAA on advertising policies. Currently, members of the Council are existing Franchisees (or their respective owners) and are elected by majority vote of Gold Star's Franchisees. Gold Star has the power to form, dissolve or change the Council. The Council serves in an advisory capacity only and does not have operational or decision-making power. Gold Star may, in its sole discretion, expand, modify or eliminate the Council or its responsibilities and is under no obligation to conduct any future advertising program with respect to written governing documents.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, Gold Star has broad authority over the Franchisee Advisory Council. Gold Star has the power to form, dissolve, or change the Council. The Council's role is purely advisory, without any operational or decision-making power.
Gold Star retains the discretion to expand, modify, or even eliminate the Council and its responsibilities. This means that Gold Star can alter what the Council does, who serves on it, and how it operates. Furthermore, Gold Star is not obligated to conduct any future advertising program according to written governing documents.
For a prospective franchisee, this indicates that while a Franchisee Advisory Council exists, its influence on advertising policies and other matters is subject to change at Gold Star's discretion. Franchisees should not rely on the Council having a fixed role or guaranteed influence, as Gold Star maintains ultimate control.