What is the name of the Gold Star marketing fund?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.3 Brand Building Fund. FRANCHISEE shall participate in the COMPANY's marketing fund (the "Brand Building Fund") as the COMPANY shall direct. Subject to written instructions from the COMPANY, FRANCHISEE shall pay all or a portion of the Brand Building Fee directly to the Brand Building Fund. The Brand Building Fund is currently administered by the Gold Star Chili Advertising Association, an Ohio nonprofit corporation, of which the COMPANY is the only member.
- 9.3.1 The COMPANY, or its designee, shall oversee all Brand Building Fund advertising, with sole discretion to determine, approve or disapprove the creative concepts, materials and media used in such advertising, and the placement, type, scope and allocation of the Brand Building Fund advertising. FRANCHISEE agrees and acknowledges that the Brand Building Fund advertising is intended to maximize general public recognition and acceptance of the Marks, Proprietary Products and System and that the COMPANY and its designee undertake no obligation, in
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company's marketing fund is referred to as the "Brand Building Fund." Franchisees are required to participate in this fund as directed by Gold Star. The Brand Building Fund is administered by the Gold Star Chili Advertising Association, which is an Ohio nonprofit corporation. Gold Star is the only member of this association.
The Brand Building Fund is used for advertising, promotional, and public relations activities at the local, regional, and national levels. These activities include television, radio, magazine, and newspaper advertising campaigns, as well as direct mail, outdoor billboard advertising, marketing surveys, and promotional materials. Gold Star has sole discretion over the advertising's creative concepts, materials, media, placement, type, scope, and allocation.
Franchisees may be required to pay a Brand Building Fee, and Gold Star may use a portion of these fees to cover reasonable salaries, administrative costs, and overhead associated with managing the fund. All franchisee contributions are kept in a separate account and are not used for Gold Star's expenses, except to repay any advances made to the Brand Building Fund. The fund's earnings do not benefit Gold Star, and all contributions and earnings are expected to be spent within the taxable year they are received.