How much did Gold Star spend on Advertising in 2022 (Restated)?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
$_ | 8,065,153 | $ | 6,193,189 | $ | 6,117,194 | |
NOTE 16 - PROFIT SHARING EXPENSE
Profit sharing / 401(k) expense was $64,584, $73,246, and $65,823 for the
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total advertising expense reflected in the company's consolidated financial statements for 2022 was $996,584. This figure represents the company's contribution to the advertising entity for marketing research and product development.
It is important to note that Gold Star Chili Advertising Association, Inc., a separate legal entity, handles advertising and marketing services for franchisees. Gold Star acts as a conduit, collecting advertising contributions from franchisees and disbursing the funds to this entity. The expenses related to this pass-through function are not reflected on Gold Star's consolidated financial statements.
Prospective franchisees should understand that the $996,584 represents only a portion of the total advertising spend. Franchisees are also required to contribute to the Brand Building Fund and spend a percentage of their gross sales on local marketing. To get a complete picture of advertising expenditures, franchisees should request the annual report of the Brand Building Fund, which details the use and application of those funds.