How much did Gold Star spend on Advertising Expense 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 total advertising expenditure for that year.
It's 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 advertising entity. The advertising expense reflected in the financial statements represents the company's contribution to the advertising entity for marketing research and product development.
For a prospective franchisee, this means that while Gold Star franchisees contribute to advertising efforts, the company also allocates funds for advertising-related activities. Understanding the breakdown of advertising expenses and the role of the Gold Star Chili Advertising Association is crucial for assessing the overall marketing support provided by the franchise.