Is Gold Star obligated to spend any amount on advertising in the area where a franchisee's Gold Star restaurant is located?

According to Gold Star's 2025 Franchise Disclosure Document, Gold Star is not obligated to spend any amount on advertising in the area or territory where a franchisee's restaurant is located. Gold Star has complete discretion regarding the Brand Building Fund, and neither Gold Star nor GSCAA is under any obligation to make expenditures of collected Brand Building Fees in any particular geographic area or for any particular franchisee. This means that franchisees cannot rely on Gold Star to directly support their location with advertising dollars.

Franchisees are required to participate in the Brand Building Fund and pay Brand Building Fees equal to up to 7% of weekly Gross Sales. These fees are used in the Brand Building Fund supervised by Gold Star or its designee, currently GSCAA. The Brand Building Fund may disseminate advertising through various media, including print, radio, television, billboards, newspaper, and digitally via e-mail and internet advertising. Media coverage may be local, regional, or national in scope, all at the discretion of Gold Star or its designee.

While Gold Star is not obligated to spend advertising funds in a franchisee's specific area, the FDD indicates that during the fiscal year ended December 31, 2024, media coverage was typically local in scope and limited to the Greater Cincinnati DMA. Smaller scale marketing programs have also been implemented in Lexington and Somerset, Kentucky. Franchisees can develop their own advertising materials for their own use, at their own cost, provided they obtain Gold Star's prior written approval.