What is required to develop advertising materials for a Gold Star restaurant?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
You may develop advertising materials for your own use, at your own cost; provided that, you must obtain Gold Star's prior written approval of these advertising materials.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are permitted to develop their own advertising materials for their Gold Star restaurants, but this is conditional. Specifically, franchisees must obtain Gold Star's prior written approval before using these materials. This requirement ensures that all advertising aligns with the brand's standards and marketing strategies.
This approval process is important for maintaining brand consistency across all Gold Star locations. While franchisees have the freedom to create their own advertising, Gold Star retains control over the messaging and presentation to protect the brand's image. This is a common practice in franchising, where franchisors balance the need for local marketing with the importance of a unified brand identity.
Gold Star also has established a Brand Building Fund, which is used for advertising and marketing activities to promote the brand. The Brand Building Fund is supervised by Gold Star or its designee, currently GSCAA. Franchisees are required to participate in the Brand Building Fund and pay Brand Building Fees equal to up to 7% of weekly Gross Sales. This fund is used for various media, including print, radio, television, billboards, newspaper, and digital advertising. The Gold Star Chili Franchisee Advisory Council advises GSCAA on advertising policies.