Does Gold Star have the power to dissolve the Franchisee Advisory Council?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The Gold Star Chili Franchisee Advisory Council (the "Council") advises GSCAA on advertising policies. Currently, members of the Council are existing Franchisees (or their respective owners) and are elected by majority vote of Gold Star's Franchisees. Gold Star has the power to form, dissolve or change the Council. The Council serves in an advisory capacity only and does not have operational or decision-making power. Gold Star may, in its sole discretion, expand, modify or eliminate the Council or its responsibilities and is under no obligation to conduct any future advertising program with respect to written governing documents.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to the 2025 Gold Star FDD, Gold Star has the authority to form, dissolve, or change the Franchisee Advisory Council. The council's primary function is to advise Gold Star on advertising policies. Members of the council are existing franchisees or their owners, elected by a majority vote of Gold Star franchisees.
However, the FDD clearly states that the council serves only in an advisory capacity and does not possess any operational or decision-making power. Gold Star retains the sole discretion to expand, modify, or even eliminate the council, along with its responsibilities. Furthermore, Gold Star is not obligated to conduct any future advertising program according to written governing documents.
For a prospective franchisee, this means that while a Franchisee Advisory Council exists, its influence is limited. Gold Star ultimately controls advertising policies and has the power to alter or disband the council. Franchisees should be aware that their input through the council is advisory and not binding, and Gold Star's decisions regarding advertising and the council's structure are final.