Who oversees all Brand Building Fund advertising for Gold Star?
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 or its designee oversees all Brand Building Fund advertising. Gold Star, or its designee, has the sole discretion to determine, approve, or disapprove the creative concepts, materials, and media used in such advertising. They also control the placement, type, scope, and allocation of the Brand Building Fund advertising.
This means that as a franchisee, you will have limited to no control over the advertising strategies and materials used to promote the Gold Star brand. While franchisees contribute to the Brand Building Fund, the franchisor ultimately decides how those funds are spent and what advertising campaigns are implemented.
Gold Star states that the Brand Building Fund advertising is intended to maximize general public recognition and acceptance of the brand's trademarks, proprietary products, and overall system. The company does not guarantee that any particular franchisee will directly or proportionally benefit from the advertising or promotion conducted through the Brand Building Fund. This is a common practice in franchising, where advertising is often geared towards building brand recognition rather than directly benefiting individual locations.