By how much can Gold Star increase the Brand Building Fee in any 12-month period?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 4: The amount of the Brand Building Fee is determined in Gold Star's sole discretion. However, the Brand Building Fee will not be increased by more than 1% in any 12-month period. In many cases, the Brand Building Fee assessed for the operation of a Special Purpose Outlet, as defined in Item 12 below, is 4% of Gross Sales.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the amount of the Brand Building Fee is determined at Gold Star's discretion. However, the Brand Building Fee will not be increased by more than 1% in any 12-month period. This fee is used to support the Brand Building Fund, which is currently overseen by the Gold Star Chili Advertising Association (GSCAA).
This limitation on fee increases provides some predictability for franchisees in managing their ongoing costs. While Gold Star has the authority to set the Brand Building Fee, the 1% cap on annual increases helps franchisees forecast expenses and plan their budgets accordingly.
It's important to note that the FDD also mentions that the Brand Building Fee for Special Purpose Outlets can be 4% of Gross Sales. A prospective franchisee should clarify with Gold Star whether this 1% limitation applies to all franchise locations or if the Brand Building Fee for Special Purpose Outlets is subject to different terms.